You might have studied in your Economics class- the law of
'demand and supply'. It is a well known fact that an excess of demand
over supply, leads to the rise in prices of the commodity. The current
scenario of India's real estate is a true portrayal of this basic
fundamental of economics.
To invest in properties has become more expensive over the past few years. A study conducted by Donald Trump Jr. shows that the realty market in India is worth US $ 12 billion, with an average annual growth of 30%. The prices of property have increased by over a 50% in metropolitan cities like Bangalore, Pune, and Mumbai.
Where has the property, disappeared?
The Indian economy and particularly the IT and the BPO sectors have been growing at a constant rate. These industries provide high paying jobs to its employees, which is a motivation for the employees to enter these fields. People are also well aware of the luxurious lifestyles of the people living in the West. With money tinkling in their pockets, they can think about splurging it on luxuries in India.
However, the construction business is at an all time high, still it fails to meet the ever growing demands of the large population. When everything is stitched together, the outcome is- high prices of property!
The comeback of NRI's
The returns from the real estate in India caught the attention of the NRI's. It further led to the inflow of the NRI funds to the estate sector and it also contributed to the price hype. There is also an increase in the comeback of NRI's to India, for the better. This has further added on to the pressure in the realty sector.
The commercial and the property sector are on a full upward swing with mushrooming of shopping malls, multinational companies, and entertainment sectors, opening across the country. This obviously creates a demand for office space.
The investments in houses and commercial spaces gave high returns to investors and the foreign investors are also getting attracted to the luxurious properties available in India. According to the forecast of Merrill lynch, the property business will grow to 90 billion by 2015!
Do you think that purchasing properties in India has become a distant dream which has less chances of materializing for the common man? Is the real estate only for the affluent man, who can afford it and own it? Is this a bubble that is waiting to explode soon, or do you think the estate market will grow further in the future?
To invest in properties has become more expensive over the past few years. A study conducted by Donald Trump Jr. shows that the realty market in India is worth US $ 12 billion, with an average annual growth of 30%. The prices of property have increased by over a 50% in metropolitan cities like Bangalore, Pune, and Mumbai.
Where has the property, disappeared?
The Indian economy and particularly the IT and the BPO sectors have been growing at a constant rate. These industries provide high paying jobs to its employees, which is a motivation for the employees to enter these fields. People are also well aware of the luxurious lifestyles of the people living in the West. With money tinkling in their pockets, they can think about splurging it on luxuries in India.
However, the construction business is at an all time high, still it fails to meet the ever growing demands of the large population. When everything is stitched together, the outcome is- high prices of property!
The comeback of NRI's
The returns from the real estate in India caught the attention of the NRI's. It further led to the inflow of the NRI funds to the estate sector and it also contributed to the price hype. There is also an increase in the comeback of NRI's to India, for the better. This has further added on to the pressure in the realty sector.
The commercial and the property sector are on a full upward swing with mushrooming of shopping malls, multinational companies, and entertainment sectors, opening across the country. This obviously creates a demand for office space.
The investments in houses and commercial spaces gave high returns to investors and the foreign investors are also getting attracted to the luxurious properties available in India. According to the forecast of Merrill lynch, the property business will grow to 90 billion by 2015!
Do you think that purchasing properties in India has become a distant dream which has less chances of materializing for the common man? Is the real estate only for the affluent man, who can afford it and own it? Is this a bubble that is waiting to explode soon, or do you think the estate market will grow further in the future?
As the prices of real estate are increasing by the day, you can
even look for affordable housing options. Conscient is a company that
gives you affordable properties in India, as per your budget.
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