The latest Wealth Report 2010 Attitudes Survey, a research report brought out by leading global property consultancy firm, Knight Frank in collaboration with Citi Bank, has forecast that
real estate sector in India is likely to witness fluctuations with prices of prime properties in India forecast to be zooming northwards by 12-15 per cent in 2010 on one hand and demographics change supporting demand on the other. The survey results showed that 70 per cent of the respondents believed that 2010 would be a good year to be investing in property, with more than 50 per cent predicting that residential property would be prime attraction.
With the number of high net worth investors (HNWIs) in India growing at 20 per cent a year, second only to Singapore and the huge community of wealthy non-resident Indians living overseas—keen in investing back home—the Mumbai and New Delhi realty markets now hold a significant level of promise for these potential investors, as per Pranab Datta, vice-chairman and MD, Knight Frank India.
The survey also points out that the biggest story was really the huge demand for affordable housing from middle-income families. Knight Frank estimates that about 2 million houses would be needed by 2011 – a potential market of US$ 66 billion. In terms of luxury holiday homes, Goa was traditionally the favoured destination, but many rich Mumbai residents are now buying seaside properties in the resort of Alibag, two-and-a-half hours’ drive south of the city or a 15-minute hop by speedboat. Five-acre properties could cost up to US$ 8 million to US$ 10 million.
Other cities in the reckoning for major sales included Bengaluru, Chennai and Hyderabad.