It will be a mistake to raise prices of homes now anticipating festive season demand and because of a fall in new project launches, since the revival of consumer interest may be fragile, according to some builders.

'It is not very wise to increase prices drastically now,' said Niranjan Hiranandani, managing director of Hiranandani Group, one of Mumbai’s biggest real estate developers. 'The market has just recovered and buyers are returning.'

According to developer sources, home prices have risen around 15% in tier-I cities, particularly in Mumbai and the National Capital Region over the past 2-3 months, anticipating a pick-up in demand.

Times of India