The IIMB Magicbricks Housing Sentiment Index (HSI) for the 3rd quarter of 2014-15 was sharply down across all 10 cities, ending the cautious optimism witnessed so far this year — Ahmedabad, Delhi and Gurgaon witnessed over 25% correction in sentiments compared to the previous quarter.
The Housing Sentiment Index (IIMB-Magicbricks HSI) assessed by IIM Bangalore and Magicbricks, forecasts that homebuyers across all 10 cities surveyed expect real estate prices to drop over the next six months.
The aggregate Housing Sentiment Index (HSI) measured across the 10 cities dropped sharply by 29% this quarter to 81. (An HSI score of 100 suggests the prices would remain static). The IIMB Magicbricks buyer sentiment survey includes the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune.
“While there is an overall drop in consumer sentiments, the Indian real estate market continues to see robust demand for properties in the affordable range of Rs 20-40 lakh from end-users. Ease in minimum capital investment and reduction in minimum built area of projects to procure FDI is likely to address demand and keep the real estate market attractive in the medium to long-term,” explains Sudhir Pai, Business Head, Magicbricks.