Indo-Pak Tensions May Cut North India Home Sales 5-10 percent: ANAROCK

The sale of residential real estate in Delhi-NCR and other parts of north India may experience a short-term drop of 5-10 percent if the India-Pakistan conflagration continues, says ANAROCK, a real estate consultancy firm.

But the company stated that there was no question of a plunge for the time being. Prashant Thakur, Regional Director and Head – Research, ANAROCK Group said a war may affect the real estate market in a variety of ways such as reduced end-user & investor confidence & scarcity on raw materials.

“Residential absorption in Delhi-NCR and other parts of north India may witness a short-term dip of 5–10 percent. While luxury housing buyers tend to delay purchases in periods of uncertainty, demand for mid-income housing will be the first to recover once normality is restored. However, the price of cement and steel would remain elevated over the medium term unless the government intervenes,” Thakur said.

He further added that property prices were not going to fall by leaps and bounds unless hostilities last more than a year.

"Today’s market is dominated by large, listed, and financially robust developers who do not carry excessive leverage. This gives them holding power, and the major banks are also well-capitalized. There may be a pause on price hikes, followed by a sharp hike in prices on account of higher construction costs next year,” he explained.