India's housing market to remain resilient, defying global downtrend: Reuters poll

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India's house prices will rise steadily in the next few years roughly in line with overall economic growth, with low chances of a significant slowdown over the coming year, according to property experts in a Reuters poll.

The findings highlight how the housing market, one of the biggest employers in a country of around 1.4 billion people, is likely to remain a stable contributor to growth in Asia's third-largest economy going forward.

"The growth trajectory is definitely poised towards the upside, but expectations of rising interest rates, which may act as a momentary disruptor to demand, may see developers easing up on price increases in 2023," noted Rohan Sharma, senior director at JLL Research.The Reserve Bank of India has also raised its repo rate, now at 5.90%, several times this year since May, by 190 basis points in total, with a few more hikes likely before a pause.

A regional breakdown of the latest Reuters poll data showed prices in Bengaluru, Mumbai, Delhi and Chennai were also forecast to rise by a median of 5%-6% over the coming three years, in line with the national average. House prices would need to fall by a median of just 6.25% from peak to trough to make them affordable, according to the median response to an additional question, with the highest estimate at 17.5%.

 

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