Prospective homebuyers expect property prices to rise over the next six months, according to a survey by IIM Bangalore and real estate portal Magicbricks.
"The latest Housing Sentiment Index (IIMB-MB HSI) by IIM Bangalore and Magicbricks forecasts that homebuyers across 9 of the 10 cities surveyed expect real estate prices to rise over the next six months," Magicbricks said in a statement.
The aggregate Housing Sentiment Index (HSI) measured across 10 cities rose by 9 per cent over the previous quarter and stood at 118, it said, adding that an HSI score of 100 suggests prices are expected to remain static.
This index is based on an online survey of prospective home buyers in Ahmedabad, Bengaluru, Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune.
Commenting on the report, IIMB-Century Real Estate Research Initiative (CRERI) Lead Researcher Uma Sitaraman said: "Most cities witnessed a marginal increase in sentiment and this guarded optimism is in line with the new government stepping in at the centre with a clear majority during the quarter."
"People seem to be waiting to understand the effects of this new government before taking any major decisions. With the stellar performance of the equity markets, real estate is bound to witness healthy demand in the near future due to re-allocation of profits from equities into housing," Sitaraman said.
Hyderabad posted an HSI of 118, an increase of 22 per cent as compared to the previous quarter. Sentiment has improved considerably after the division of the state.
Bengaluru topped the list of cities once again with an HSI of 143, a marginal 2 per cent increase from the previous quarter. Ahmedabad was the only city with negative sentiment of 86, a drop of 13 per cent from the previous quarter.