Melting Prices to Boiling Growth...Indian Real Estate

Melting Prices to Boiling Growth...Indian Real Estate

By SiliconIndia   |   Friday, August 30, 2013
printer Print email Email
Owing to turbulence in many quarters of the industry, there is a fear of another slowdown, gazing at the Indian economy. A fall in the demand of manufactured products, crunch of liquidity in the financial system and an overall sluggish economic stance has stirred fear amongst the stakeholders in trade and commerce of India. However, along with the speculations and soured sentiments in the market, there are hopes from sectors like real estate to be the spearhead of maintaining growth and expansion in rough times. The rapid urbanization and the subsequent expansion of metropolitan regions over the last decade had attracted a considerable number of migrants to these urban towns. This further triggered the concentration of working professionals in the business districts of these metro regions. Subsequently, there was a significant increase in the demands of residential and commercial hubs in cities like Gurgaon, Noida and Bangalore. The absorption rates in the residential and commercial sector of the metro regions have stabilized over last few months. Owing to the crunch of liquidity in the financial ecosystem, the stabilization of occupancies in real estate sector has proved to be on a lower side. In tandem to the reduced demands of residential units, the inventories of fresh properties have swollen and the developers have been witnessed to have cut down the prices of unsold residential units. The flow of cash in the realty ecosystem is directly dependent on the demand and supply quotients. In pertinence to the declining demand, the supply has increased and hence the prices are observed to be falling. This is expected to result in the recuperated interest of home aspirers to customize a bargain with developers and own a reasonably priced property. Moving forward, the increased number of dealings in this sector will unblock the flow of liquidity and ease the building pressure. The year 2013 has been the year of restructuration of regulatory norms for the real estate sector. Parallel to the awaited ratification of the regulatory bill that has been tabled in the Rajya Sabha, the RBI has created an exclusive category for residential borrowing from external sources. This will qualify cheaper loans from the banking sector and encourage easy finance in the realty domain. Also the norms (minimum investment bars) for FDI channels to enter the Indian realty sector are being adjusted to let smaller foreign investors explore the Indian real estate sector. Another step in the direction of steadying the flow of cash in realty sector comes from the proposal of bringing down the minimum years experience for foreign investors to invest in a particular project of real estate in India. The real estate sector has been resilient to the phase of liquidity crunch being faced by the Indian market in the present day. Moreover, the new adjustments in the pricing structure and financing channels, hold brighter prospects for the construction business in the coming future.
Write your comment now
 

New Launch Projects

Follow SiliconIndia :

Looking for property to buy????
Let us know your property requirement:
Name
Contact No
Email id
Requirement
 
We will help you find the right property