Real estate – the deals of immovable assets for residential or commercial purpose.
When i meet real estate professionals and ask for the sector’s growth they often say that there is slump in real estate market since the last few years and it will go down furthermore; I am a common man and don’t know economical terminologies , we Indians go by the words of experts in industry. Let’s see What it exactly means to say slump in real estate market?
I was going through a article at IBEF.ORG which suggests that in FY2008 market size was US$50.1 billion; in 2009 it increased and came up to US$53.3Billion in 2013 followed by growing trend it came up to US$ 121 billion and in 2015 it was US$126 Billion.
Also on the same source it shows that Over April-June 2016, India's office space absorption grew 46 per cent year-on-year. The only point which I found negative is Private Equity (PE) investments which declined by 30%.
So as per the above report, is market slump directly proportionate to low Private equity investment?
I learned in childhood that market runs in demand and supply rule , I am sure all of us have gone through this topic that prices go up when demand is bigger than supply.
Let’s have a look at this point as well; while roaming around Delhi NCR market specially in Gurgaon & Noida , I found that there are so many flats which are in ready-to-move state but are still vacant/un-allocated due to non sale of the property.
With growing population there is huge demand of houses but still so many properties are vacant because the prices are beyond the reach of common /middle-class man. (Referring middle class as common man because most of population falls into this zone) ; now question arises why the rates are high when we see so many inventory still left unallocated?
Okay, just leave the private builder floors/projects ; come to residential properties constructed by govt development authorities ; I see so many properties unallocated when it comes to DDA , Huda , Noida Development authority’s flat. On other hand there are so many applications still pending with these authorities.
Clearly I don’t see any slum in market because common people are willing to buy a residence otherwise there would not have been so many applications pending with govt authorities; So there is a demand.
I don’t see low supply as there are so many private & govt authorities owned residential property still on un-allocated state.
Even if you say slum in market; prices are still on higher side which is going beyond the reach of a common man ; I guess this is the major problem . A common person can not afford such over valued property ; supplier don’t want to sell property on lower price (cost + low margin); thus while buy-sale activity is on slower side people say it slump in real estate!!
If still the parameter is foreign investments then I wish to say government must step in with some proper policies on real estate ; these are people of India who are going to live in India ; thus market must be regulated by the Indians not the foreigners, considering this, why they are the market movers in India?
We Indian go by words not by statistics; we elect government by words not by deed; India can grow only when market movers are its own general public otherwise there is nothing like Democracy at the first place.
These are my own views; everyone should have their own perception to take the things, not regulated by other’s saying.
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