The Reuters poll was done between the 29th of October 29 and 4th of November. The survey showed that the national house pricing would rise by 2.8 per cent this year, while in the year 2019 it will be 2.0 per cent. This will be almost around half of the rate of the current as well as the expected rate of consumer price inflation. In that case, this price rise will be the lowest in the past ten years.
To see a positive side of it, Indian real estate despite being hit by demonetisation, the goods and services tax as well as the Real Estate Act, it might be benefitted from softening of the property rates. If you see the national capital, the Reuter poll predicts that the property rates may fall by 2.0 per cent this year, while in 2019 it will be 2.5 per cent. This will be the highest for any of the cities in the country. If you ask experts, they say one must blame this future downturn of the prices to the overvaluation in a market. By 2019, one can see a stagnation of prices in Mumbai as well. On the other hand, Bengaluru and Chennai may experience price gain of one to two per cent over the year 2018 as well as in 2019 according to the poll.
As per the experts, the real estate market in India has overvalued proves and because of which new investors are reluctant to enter into this market. This decline in prices of properties may encourage new investors to step into the real estate world although it may not be great news for those who are planning to sell their properties next year.