At hint of recovery, realty cos hike rates by 15%

MUMBAI: With the gradual return of residential property buyers, especially in key regions like New Delhi-NCR (National Capital Region) and Mumbai, prices in these areas have moved up 10-15%. While some developers have increased prices across their projects, others are doing it on a project-specific basis.

Industry trackers say the hike in prices could result in demand moving southwards. Realty fund Kotak Investment Advisors director Vikas Chimakurthy said, ���There was a substantial demand, especially in the mature markets, after prices dropped a few months ago.

Today, potential customers are not willing to buy properties at these prices.���Developers, meanwhile, confirmed the decision to hike prices. ���We have increased prices across all our properties by 10%.

It is not much and is the result of the improved market conditions,��� said Abhishek Lodha, director at Lodha Developers, a Mumbai-based company which has projects in and around the city. Delhi, like Mumbai, is witnessing a hike in prices of realty projects.

The country���s largest real estate company by market capitalisation, DLF, is one of those whose property will be dearer. ���Yes, there has been a price increase though it is still limited to some projects nearing completion,��� said DLF executive director Rajeev Talwar.





How long these prices will hold out is hard to determine. ���Mumbai and some parts of New Delhi have been witnessing some rise in price and it will be interesting to see if these prices are sustainable. In other markets like Bangalore, supply still exceeds demand,��� said real estate consultant Saffron Asset Advisors managing director Ajoy Veer Kapoor.

As property gets dearer, there has been concern among buyers if this is purely on account of the economic scenario improving or due to builders coming to an understanding between themselves. Though prices have not reached 2007 levels, the hike has been enough to make buyers think twice before making a decision.