Real Estate Sector in India

We are nearing the half way mark on 2016 and real estate in India, seems to wait for the rain Gods to do the miracle. 2016 was being piped as the year of change for the real estate sector in India, however things have not shown signs of change till now. Though recovery in the commercial segment is being claimed, one is not sure of the figures; as commercial segment generally feeds on the residential market and incase residential sector is going through a slow-down, commercial segment will undoubtedly follow suite.

Positive Impact of the Slow-Down on Real Estate in India

The slow-down has helped developers to cut down flab, focus on cost cutting and make the industry more professional and razor sharp, aspects which the real estate sector in India had overlooked till now. Also, the builders have realized that they cannot take the buyers for granted anymore.

The Tough of War Continues

Real estate in India having gone through the correction phase, is now in its balancing act stage, the most crucial one; like a trapeze artist walking on the thin rope, one wrong step and it is the end of the game. Property prices have come down by15% to 20% in different cities, depending on the cushion which the developers enjoyed. Property buyers or investors are following the advertisement ‘yeh dil mange more’ and has been holding back, anticipating further drop in prices. It’s a battle of wits between the builders and investors, which is at its climax; by year end the picture should be clear. Whichever way this battle concludes, the bottom-line is that both sides would be winners, having achieved the most appropriate market adjustments.

Real Estate Sector in India is Awaiting the Turnaround

It is very difficult to predict when the turnaround will happen in the real estate in India, however there are early indicators that the bottom point has been reached and we should be witnessing a revival in the near future. Whenever it happens, one is unlikely to see a peeked rise, the properties in India has matured over the past couple of years and that is likely to reflect in its price trends.

As compared to the northern cities in India the real estate in south India has been holding its ground. Cities like Bangalore and Hyderabad in fact have registered a positive growth. This predominantly is due to the fact that it is an end user market, as also, builders have stuck to the affordable and mid segment markets which have the maximum demand and ventured less into the luxury residential segment.

The demand for property is ever increasing in India, it is very important that the sales pick up, as this would infuse the much required capital into the real estate sector in India, boosting future projects and developments, in markets which have the demand.