Modernization has attracted many young Indians to spend their life in the metro cities like Bangalore, Mumbai, Pune, New Delhi and Hyderabad etc. Due to this, the rate of urbanization has increased in the country since last few years. Here is a brief overview of real estate statistics in few of the Indian cities, as specified by National Housing Bank, analyzing the percentage of variation in the asset price list over the second quarters of 2011 to 2012. The current scenario traces back to India’s great housing boom to 2002 to 2007, supported by strong economy, urbanization encouraging price hikes, inadequate infrastructure, low interest rates, lack of planning and antiquated land use laws. Towards the end of Q2 2012, house prices hiked by 17.01%, 8.84%, 33.33% in places New Delhi, Mumbai and Pune. On the other hand, Kochi, Bhopal, Hyderabad, Patna, Surat and Faridabad witnessed dips in prices. In addition to this, improper legal framework for foreclosures, rampant titling problems and limited financing options encouraged by banks towards the low-income individuals have contributed to India’s small mortgage market.
Amongst all these variables fluctuating in the scenario, International Monetary Fund (IMF) concluded about the uncertainty of the outlook. The International Monetary Fund (IMF) revised its GDP (Gross Domestic Product) growth prediction for India this year to 4.9% from 6.1%. Similarly, the World Bank has also reduced its India growth estimation to 6% in 2012 from an earlier estimation of 6.9%. On other side, the RBI (Reserve Bank of India) expects the Indian economy to grow by 6.5% this fiscal year. However, economic policy revamp and inflation and continuing hikes in interest rates still continue to make the real estate pricing status dwindling.
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