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Finance > Real Estate > Indian Real Estate: An Insight
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Article rating : 0.00, 0 votes. Author : George Gonigal
Indian real estate markets have been going through a rough patch from 2007. Property developers are facing liquidity crunch and seeking for alternative options to keep the ball rolling. Demand curve for residential properties is moving south while the cost of construction is steadily rising. According to a senior official of Indiabulls, real estate developers who have been reporting good results and possess sound financial base, are taking contingency loans to support their financial well being.
Mumbai has always been the trendsetter in the indicative property prices of real estate India. With the opening up of the retail market, there has been a growing demand for retail properties in Mumbai. This has created a viable market for mall space and other retail stores and showrooms. Currently, the real estate investors are mainly HNIs, but a large volume of institutional money is expected to be flowing into this sector in the coming years.
The National
Capital Region (NCR) of Delhi, Gurgaon and Noida is witnessing a slowdown in demand for residential properties for the past couple of years. Spiraling cost of financing home purchase, rising property values and inflation has resulted in slackening markets. Real estate investors who made millions in a short period of time in the booming markets earlier are now looking at corners. The chances for return on property investment have come to bottom. A number of real estate developers have reduced their selling price, in order to induce buyers.
The cyber cities of Bangalore and Hyderabad have seen an oversupply of residential units between the price range of Rs 50 lakh and Rs 1.20 crore. Most of such projects were launched in 2004-05 when Indian real estate markets were going through an unprecedented euphoria. But, 2-3 years down the line, the markets reached a level where correction was a need rather than event.
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