Property Rates To Remain Stable

If you are planning to buy a house this year, take all the"Mumbai has already witnessed a steep recovery in
time you need.prices after the correction in 2008 and the demand
A Crisil research report on residential property priceshas slowed down since December 2009," said Sudhir
of India's 10 biggest cities says prices will remain moreNair, head, Crisil Research.
or less stable with a moderate dip in prices in MumbaiDevelopers, however, disagree. "We have not seen
and a marginal (2 per cent) rise in the National Capitalany drop in demand and I believe demand for
Region (NCR) in 2010.residential real estate will go up by 30 per cent this
According to the report, the average capitalyear," Niranjan Hiranandani, vice chairman & MD,
appreciation in the 10 cities is expected to be 2-3 perHiranandani Construction said.
cent. Bangalore and Chennai are expected to see the"Mumbai is so starved of volume that unless land
highest rises of 7.3 per cent and 5 per centsupply increases, prices cannot drop," Dharmesh Jain,
respectively. On the other hand, Ahmadabad andCMD, Nirmal Lifestyle, said. "Considering the rate of
Mumbai will see a correction in prices by 1.8 per centinflation, we expect that prices in Mumbai to go up by
and 0.4 per cent respectively.5-12 per cent in 2010, depend- ing on the location and
Interestingly, Mumbai witnessed the maximum rise inquality of constriction of building."
prices by 11 per cent between March and NovemberThe expected price rise in Bangalore and Chennai is
last year, the report said. While Central Mumbaion account of recovery of the IT sector. "The
witnessed a price rise of 21 per cent, the centralconfidence is back now in the (IT) sector leading to a
suburb saw 15 per cent hike.demand in those areas," said Nair.