Residential property prices are likely to rise by up to 10 per cent in the next six months as demand has picked up, says a realty consultant firm.
"Prices can rise up to 10 per cent in the next two quarters in the housing segment. In the last eight months, the segment has seen very robust demand," Cushman & Wakefield Executive Director (India) Ravi Ahuja told PTI on the sidelines of a CII real estate event here.
The country has seen an upswing in demand for both affordable and the premium housing segments, he added.
"In 2009, the prices had gone up, on an average, 15-20 per cent across the country. The highest rise was in Mumbai and it was in the range of 30-40 per cent," Ahuja said.
He said other cities like Pune and Bangalore as well as the National Capital Region (NCR) witnessed moderate to sharp rise in prices in the residential segment.
When asked about the role the forthcoming Budget could have on housing demand, Ahuja said, "If interest rates go up, then the purchasing power of consumers will go down and sales may be affected. We may see a correction in prices then."
On the commercial segment, he said the scenario is completely reverse and only 50 per cent of the supply in 2009 was absorbed.
"In 2009, there was a supply of 51 million square feet of commercial space and only 25 million square feet was absorbed." Of the total commercial space, about 80-85 per cent
comprised of IT and ITES area, where the demand is still very low, Ahuja said.
"There is an over-supply in IT and ITES space in the country, because of which the prices are under pressure," he added.
