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Showing posts with label Real Estate downfall. Show all posts
Showing posts with label Real Estate downfall. Show all posts

Sunday 26 January 2014

Real Estate

Real Estate 

Real Estate is the Biggest and the Most Important Shopping Product, both for the Buyer and the Seller. Real Estate Market in India has seen many ups and downs since many Years. There is a feeling that the Markets may go down further by 20% - 30% in next few Years. But its not all and there is a lot which is Positive about the Sector too in India.

Let us try to find out some Optimistic facts about the Industry in India:

a) Since last Two Decades, there has been a commendableGrowth in Real Estate and Infrastructure Field in India. From Homes to Apartments, Roads to Highways, Offices to Malls, the Growth is just unprecedented. This shows that even though the Graph may be down for a while, there is no need to despair in the long run. 

b) The Real Estate Growth Story has been attributed to few Factors like the Increasing Purchasing Power, High Per Capita Incomes, favourable Demographics, Customer-friendly Banks and Non-Banking Finance Companies (NBFCs), favourable Reforms by the Government and Organized Real Estate Market.Real Estate Industry contributes more than to 6% towards our National Gross Domestic Product (GDP).

c) Real Estate has long been a preferred Investment Option for many Investors. Besides Resident Indians, there are many Non-Resident Indians Investing in their Country of Origin at various Places just because they are sure of the Growth of their Hard-earned Money and thus Earning a Good Return in it. 

d) There is a General Hope that the Indian Rupee will surely be able to curb its free Fall against the Dollar and the Indian Economy will be able to turn around. Also, many Private Equity (PE) Investors are now also willing to Invest in the Sector more.

e) As per some Industry Analysts, because of the Cyclical Nature of the Markets, the Real Estate Market will get a major Boost in next 5-6 years. It is a Good Time to Invest in Properties especially in Metros and fast-growing Cities like Indore, Chandigarh, Coimbatore, Lucknow etc. Also, mid-range Houses are expected to give better Returns than Premium or Luxury Apartments. 

f) Religious Places like Shirdi, Puri, Benaras, Tirupati etc., although remain low Profile, but have the Best Real Estate situations in the Country. The Reason being they don't get affected by Recession. In fact, more Recession, more Demand by People to come and stay in these Places. Also, many NRIs prefer Buying Properties in these Places and visit in Vacations and Holidays to stay and be nearer to God.  

g) Some prevailing of Real Estate scenarios in the Country:

1) The Real Estate Market is witnessing a Boom after the arrival of Aam Aadmi Party (AAP) in the Delhi Government and lot of optimism is visible amongst the Investors about the Local Market.

2) The 'Super Corridor' in Indore connecting the City with the upcoming International Airport is already seeing a surge in Projects on the stretch and their Prices. Each iota of Land has been taken up by some Developer or the other for bringing up their Dream Projects.  

3) Despite the uncertain Political Scenario in Andhra Pradesh, the Real Estate Market here is witnessing a Growth starting this Year following the Decision on Telangana by the Government. Over the next 4-5 Years, some Areas of Hyderabad like those adjescent to Bangalore Highway (Shadnagar etc.) are sure to get the Land Prices doubled.  

Guest Blogger : 

Pragya Banerjee [ MBA (Finance); 7+ years of work experience ]