Property prices are likely to increase only after six months when the country will get a new government, a recent survey said.
The
Housing Sentiment Index (HSI) assessed by IIM Bangalore and forecasts that home buyers across eight of 10 cities
surveyed expect real estate prices to rise over the next six months.
Cities like Ahmedabad, Kolkata, Mumbai, Delhi, Hyderabad, Pune, Noida, Gurgaon, Bangalore, Nagpur and Chennai were surveyed.
"Indian
real estate is bound to remain attractive in the medium term with
faster growth expected in the Tier II cities. Competitively priced urban
pockets such as Noida, where robust supply is backed with a promise of
better infrastructure, received a thumbs-up from end users. However,
active interest will take another six to nine months, since consumers
expect prices to go up only after six months, post the 2014 elections, Business Head Sudhir Pai said in a statement.
The national HSI remained positive at 108. An HSI score of 100 suggests that prices would remain static.
According to the survey, Mumbai posted a housing sentiment index of 106, turning positive for the first time.
"Healthy
demand from Navi Mumbai and Thane resulted in this gain. Infrastructure
developments in Navi Mumbai including Trans-Harbour Link and the
proposed international airport are turning this location into an
attractive investment option," he said.
Bangalore topped the list of cities with an HSI of 140, witnessing a further 15 per cent jump in HSI from the previous quarter.
Strong
demand from the infotech sector and comparatively affordable prices
make this city an attractive option, the survey said.