I'm amazed at the real estate market has changed since the days I bought a flat.
Just to give you a perspective, I bought a flat of 1500sft for 1200 Rs per sft at Malaysian township, back in 2005. My neighbour sold his at 2800 Rs per sft!
What is the reason for this unprecedented growth in Real estate market?
Burgeoning Indian middle class consumers: This is the biggest reason. Indian middle class is making more money than ever before. The demand from growing Indian middle class is so high that there is a huge gap between demand and supply. Yes, even during recession.
Multinationals in India: India has become a growth strategy for every major multinational worldwide. The entry of multinationals in India has grown by over 300%. These multinationals provide lucrative jobs which again has a spiraling effect. With higher incomes, Indian people are investing more in real estate than ever before.
Foreign Direct Investment:With Indian Government opening up Indian real estate to Foreign Direct Investment in 2005, lot of money is being invested in various projects across the country catering to the demand.
Friendly government policies: Not only has Indian Government liberalized the FDI norms, it has also allowed private equity funds to enter the real estate market, this has led to the improvement of Indian infrastructure fueling the real estate growth.
Positive outlook of Indian Economy
With Indian economy looking up, Investors are confidently pumping money in Indian property market.
Demand for quality lifestyle
With higher incomes, markets looking up and concept of nuclear families becoming a norm, Indians are looking for quality lifestyle, thereby increasing the demand for integrated townships that offer commercial, retail, residential, and leisure facilities!
Thursday, September 17, 2009
Wednesday, September 9, 2009
Update on real estate markets
We are slowly putting behind us the rising unemployment, rising foreclosures, the plunging of the major market averages and evaporating consumer confidence that was soon becoming a part of us.
Encouraged by price correction and lowering of interest rates, the real estate market in Hyderabad, after a period of relative inactivity has witnessed improved levels of activity on the part of home buyers and property seekers turning into investors in the residential sector, especially in the low to mid-end housing segment, as shown in many a market analysis reports of the second quarter in 2009.
CBRE Market View published for the second quarter, said: “Level of enquiries went up and, more significantly, transaction velocity also increased marginally as compared to first quarter of 2009.
Most developers have announced launch of new projects, which was being put on hold for quite sometime now.
All in all, good times are here again!
Encouraged by price correction and lowering of interest rates, the real estate market in Hyderabad, after a period of relative inactivity has witnessed improved levels of activity on the part of home buyers and property seekers turning into investors in the residential sector, especially in the low to mid-end housing segment, as shown in many a market analysis reports of the second quarter in 2009.
CBRE Market View published for the second quarter, said: “Level of enquiries went up and, more significantly, transaction velocity also increased marginally as compared to first quarter of 2009.
Most developers have announced launch of new projects, which was being put on hold for quite sometime now.
All in all, good times are here again!
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