As all of us know the present economic situation is not promising and not good for the real estate business all over the globe. But real estate in India flourishes even in the present economic scenario. There are many reasons for this. Just before the economic downtrend, the estimated development of real estate in India was more than $ 16 billion with an expected growth rate of 25 to 30 % every year.
Real estate in India consists of about 80% dwelling units and the rest for commercial and other purposes. This huge difference can be attributed to the population growth and the status of the developing nation. The rise in the middle class families in India is one of the major factors in the growth of real estate in India. The financial capacity of middle class Indian citizen has grown due to globalization and communication industries. This clearly indicates that there will not be any demand loss in the real estate in India. Residential property development cannot under grow or can be restricted. Many new apartments and independent residential villas are getting constructed and sold even in remote places in India. Most of the effects of economic recession affected the commercial property development and constructions.
A recent study after the doldrums of the economy indicated that there would not be any dearth of demand for the residential properties and apartments in India. The present study reconfirms the estimate of growth rate of real estate in India as around 25%. Apart from that there is no economic failures for the mortgage companies and banks in India. This has kept the real estate in India in very sound foundations. The number of foreclosures and the repayment faults are very less comparing the Indian Scenario with real estate scenario worldwide.
It is true that there was a dull period in real estate in India due to the fear of economic recession in other countries. The investing community looked bleak with the uncertainties in the field. They were eagerly watching the effect of economic problems in the global level to the Indian economy. Now they have come out of fear and started vigorously investing in the real estate market.
Government’s policies also help the real estate in India. Government is making all out efforts in keeping the real estate in India intact. It announced many packages including the reduction in mortgage rates to maintain the demand for properties as in earlier time. It has given much-needed boost to the investing community.
If you are a real estate investor, you can invest in real estate in India now without any fear or doubts. Indian real estate is very healthy and is a good source to gain many profits. Presently it is a buyer friendly market and it is time for the buyers to invest sufficient funds in it. It can fetch you short term as well as long-term returns. If you wait for few months after investing in properties in India, you can get more and more revenue as returns. |
