Delhi top destination for end users looking to purchase flats.
July 24, 2010

Delhi is the most popular place to buy a property, according to a new survey. According to the report, about 34 per cent of those surveyed want to purchase a flat in Delhi, followed by 28 per cent plugging for Mumbai and 11 per cent each opting for Bangalore and Hyderabad. The survey also reveals that the realty sector in 2010 is going to be driven by end-users.

Due to the recession and fluctuating property prices, property seekers shied away from making a property purchase last year -- but with an improving economy and slightly stable property prices, end users are ready to jump into the market this year, the survey said.

Most of the buyers who are interested in buying a house this year want it for their personal use with 67 per cent of those surveyed citing this reason. Some 23 per cent are looking for property as a long-term investment while 10 per cent are looking at it through the prism of a short-term investment.

The survey has also found that the cost of buying a property is marginally higher now due to the hike in prices of construction material, taxes and rising interest rates. Cement and steel prices are increasing and this is likely to be passed on directly by developers to the customers while a 10 per cent service tax on purchase of apartments will make buying more costly, according to the Confederation of Real Estate Developers Association of India (CREDAI).

Meanwhile, the industry is hoping that the soon-to-be-launched national real estate index will help the sector as buyers, sellers, developers and analysts get a reliable set of figures. The yet-to-be-finalized real estate price index is likely to be based on property prices in 13 cities. These will be Greater Mumbai, Chennai, the National Capital Region of Delhi, Bangalore, Hyderabad , Kolkata, Pune, Jaipur, Greater Chandigarh, Ahmedabad, Lucknow, Bhopal and Bhubaneswar.

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