Indian house prices will stagnate this year, hurt by a devastating second wave of the coronavirus which has crushed demand and offset government tax rebates and incentives for property developers, a Reuters poll showed.
The latest forecast for no growth in house prices suggests a decline in real terms with Indian consumer price inflation running over 4per cent and expected to average 4.9per cent this year. Indian housing market activity was slowing from a cash crunch even before the pandemic took hold in 2020. When asked what was likely this year, seven of 11 analysts expected a further slowdown.
A regional breakdown showed home prices this year in Delhi, the National Capital Region, Mumbai and Chennai would fall 2.0per cent, 2.5per cent, 1.5per cent and 1.0per cent, respectively, compared to no growth expected previously.