Indo-Pak tensions could dent north India home sales by 5-10%: ANAROCK

Prolonged Indo-Pak standoff could trigger 5-10% dip in north India housing sales: ANAROCK

Sale of residential real estate in Delhi-NCR and other parts of north India may see a temporary decline of 5-10 percent if the flare-up between India and Pakistan persists, according to ANAROCK, a real estate consultancy firm.

However, the company said that there was no question of a plunge at the moment.

Prashant Thakur, Regional Director and Head – Research, ANAROCK Group, said that a war might impact the real estate market in different ways, including reduced end-user and investor confidence and scarcity of raw materials.

Also Read: Indo-Pak showdown: Real estate body offers to build military, housing facilities

“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 in a note on May 9.

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Ashish Mishra

Prinicipal Correspondent|moneycontrol

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He added that property prices were not expected to drop significantly unless hostilities stretch longer 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-capitalised. 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.

Also Read: India Pakistan War Live Updates: Emergency siren tested in Delhi's ITO, complete blackout announced in Ambala

Tensions escalated between India and Pakistan after Indian armed forces carried out missile strikes on nine targets in Pakistan and Pakistan-occupied Kashmir (PoK) early on April 7 in retaliation against the terror strike in Pahalgam.