Potential Decline in Residential Property Prices Predicted
Knight Frank India anticipates a potential decrease in residential property prices in the near future. Chairman Pranay Vakil stated, “We feel prices of residential segment may go down over a period of time”. He further elaborated that certain markets may experience strong demand for residential properties, presenting a favorable opportunity for property developers to acquire land.
Investor and End-User Demand Driving Current Market
The current real estate demand is fueled by both investor and end-user activity. Investors are shifting capital from equity markets, seeking potentially better returns in real estate. Concurrently, increased consumer confidence and pent-up demand accumulated during the recession are driving end-user purchases. The convergence of these factors is leading to escalating demand and property price surges. This dynamic of investor interest combined with robust end-user demand makes the current real estate market particularly interesting to observe. This surge is impacting multiple aspects of the residential sector, generating further opportunities for all key players within the industry.