, Oct 31 (PTI) Godrej Properties said on Sunday that the realty prices are likely to go up further in cities other than Mumbai and Delhi in the next two months on the back of a stupendous demand across the country.
"Depending upon location and other amenities, real estate prices are set to go up across the country in the next two months. The reason being increased demand," Godrej Properties Managing Director Milind Korde said.
However, he was not willing to hazard any guess on the extent of price rise.
Korde said that realty prices in South Mumbai and Delhi are already overheated; but it is recovering in cities like Bangalore and Pune since the fall in October 2008, and hence, there is a lot of scope for the prices to move northward.
"The current huge demand is mainly from the middle-income class segment. Both investors as well as end-users are there in the market. However, projects bearing good and trusted brand name are attracting more customers," he said.
Korde's view might emanate from the fact that his company has sold 200 flats in the first two days of launch on October 23 in the National Capital Region (NCR).
However, it was not only demand, the rise in raw material costs would also fuel the prices of real estate further, he said and hinted that firms would not absorb the cost push but pass it on to the consumers.
"The raw material price rise is a concern for the realty firms. As is the rising interest rates. But, on the back of a strong economic growth, demand is not likely to be subdued. Hence, they are not worry about margins," Korde said.