Capital values of housing property is expected to rise marginally by 2-3 per cent this year, boosted by the improved health of the global economy, research firm Crisil said in a study today.
"Going forward, in 2010 we expect the capital values (of residential real estate) to witness a modest increase," Crisil said.
Average residential capital value, which declined by 18-20 per cent in March 2009 from the highs witnessed during the first half of 2008, remained more or less stable between March and November 2009, it pointed out.
"Residential projects across cities saw several affordable housing projects being launched by developers to attract middle-income buyers. Demand for houses mounted as the global economy improved bringing back financial confidence to the home buyers...These factors would continue to aid an improvement in absorption levels," the report said.
Crisil further said of the 10 cities surveyed during March and November 2009, Mumbai witnessed the steepest rise in capital values -- an increase of 10-15 per cent --followed by Ahmedabad (5 per cent) and Delhi and NCR (4 per cent), among others.
