Property Prices in India on the up

Residential property prices in India are improving, particularly at the lower end of the market, with demand for affordable properties in India up 10% over the past three months, according to property consultancy firm CB Richard Ellis.

Anshuman Magazine, managing director of CB Richard Ellis South Asia, commented: “With improvement in the sentiment in the economy, transactions in the affordable range of residential real estate have gone up. This has made developers to increase prices by 5% to 10% in the last three months.”

Indian property developers had cut prices by around 30% in first half of this year in order to boost demand of homes in India, following a lull caused by the global recession.

However, with genuine sign that the India real estate market is recovering, residential demand is rising once more, and as a consequence, housebuilders are increasing prices.

The greatest property price rise has been witnessed in Mumbai, where values have increased by up to 40% from the bottom of the market earlier this year.