Property price cooling in Indore
INDORE: If you are looking for buying properties in the state, it is just the right time. Going by recently released NHB Residex for April-June, 2013, an index reflecting property prices has shown Indore's real estate sector has witnessed second sharpest fall in the country by 5.64% after Ludhiana (5.99%). Bhopal has registered a decline by 1.30% during period. Secondly, Parliament has passed the Land Acquisition bill of late, which indicates that the property prices will go up in near future.
Taking a cue from these developments, both realtors and banks here are gearing up to meet the increased demand for houses in Indore and Bhopal, expecting a rush for ready possession of real estate projects. It was visible during two-day realty property possession fair, which began in Indore by D-Force on Saturday.
A property aspirant from Indore, Prakash Punwane said, "I'm looking for 3 BHK near Bicholi, where I reside at a rented house within a budget of up to Rs 30 lakh."
For private sector mortgage lender, HDFC whose lending rates begin at 10.25%, loan book in the state currently stands somewhere between Rs 2500-3000 crore, and 80% of which was having exposure to cities like Indore and Bhopal only.
Talking to ToI, business head of HDFC in MP, Vinayak Parkhi, said, "It was the right time to go for possession of readily available properties as there is no property, which was available here for next 2-3 months from now."
State-owned lender Indian Overseas Bank (IOB) has launched a scheme, under which it provides home loan at 10.25%, which is its base rate too. When contacted, CMD M Narendra said, "We are providing home loan at 10.25% for properties valued up to Rs 35 lakh and 10.75% for properties whose price goes beyond Rs 35 lakh. We are hopeful of doing good business under the scheme from across the state, which is on until October-end."
Director of Indore-based realty firm, Casa Green, Sunil Agrawal, said, "The reduction in property price has come as a bonus for property seekers."
While Bhopal is supposed to be an end-user market, Indore's real estate sector is supposed to be driven by the investors. Vice-president of CREDAI (Bhopal chapter), Manoj Singh Meek, said, "Property prices across the state are set to go up by 30% within a couple of months due to passage of various bills in Parliament like Land Acquisition Bill and others. Hence, it is the best time for customers to buy property as per their budget."
Indore-based property developer, Milan Heights general manager Jaideep Karnik said, "I think price of property is stable in Indore now. Actual buyers rather than investors are in the market here as of now."