Property price rise is not a ''bubble'', says FICCI survey
15 Mar 2007
New
Delhi: According to a recent a survey by industry
chamber FICCI, a majority of Indian CEOs and CMDs do not
foresee collapse in the prices of real estate and disregarded
the rising trend as a "bubble".
With the growing number of new-buyers, the real estate sector is likely to witness about 5-10 per cent increase in prices across all categories of cities in the coming four to six months, the survey reveals.
A vast 67 per cent of the respondents from among the 24 leading real estate consultancy firms, developers, construction companies, builders and financial institutions, did not foresee a sudden collapse in the property prices.
Approximately 80 per cent of the respondents supported the view that rise in prices was perceived in the commercial and residential segment of tier-II cities.
The survey indicated that the residential sector is more speculator-driven as compared to the commercial sector, which is more end-user driven.
According to the findings, residential property was viewed as speculator-driven by 41 per cent of the respondents, with about 29 per cent saying that it was end-user driven.
While, around 8.3 per cent of them felt that commercial property was speculator-driven and 75 per cent felt that commercial property was end-user driven.
Almost
90 per cent of the respondents felt that IPOs would
help in making the sector more organised, who said it
would drive in higher corporatisation, accountability
and transparency.
