For years, India has been one of the world’s top performing property markets.  According to the Lloyds TSB International Global Housing Market Review, India has seen a 284 per cent real rise in prices since 2001, equivalent to an average annual rise of 14 per cent.

NDTV reports that ‘prices in most Indian urban centres have doubled since the property market boom began in 2006-07, driven by growing numbers of middle class Indians looking to invest in real estate as well as speculators.’

However, the growth in Indian property prices is set to slow in 2012, thanks to a slowing domestic economy and continuing global economic certainty.  Keep reading to learn more about the property market in India.

Demand for homes in India is falling but prices continue to rise

Samantak Das, director of research and advisory at consultant Knight Frank, said: “Prospective home buyers are being held back by a slowing domestic economy and great uncertainty across the globe.

"Although in nominal terms house prices are expected to rise, once you adjust for inflation, which is more than 7 per cent, prices in real terms are stagnant.  The economic situation in India and abroad is not giving enough confidence to homebuyers, who feel it is better to wait and watch."

Buying a property in India has become more difficult for locals over recent years thanks to rising prices and buyers required to pay around 25 per cent of the total cost of the house as a down payment.  In addition, interest rates on home loans, which range from 10 to 14 per cent, will probably not fall any time soon either.

However, while demand for homes is falling, prices in India are still rising steadily.  NDTV reports that ‘in Delhi and its surrounding National Capital Region (NCR) that includes Gurgaon and Noida, average house prices are expected to rise by at least 7 per cent this year’ despite sales being down by one fifth.

Are you looking to buy property in India ? Jaipur , Patna , New York , Maharashtra , Musatpura

Are you looking to rent property in India ? Jaipur , Khoda , Mumbai , Candolim , Pune

Author

  1. avatar
    Nick Marr

    I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.