In the
present times, Indian Real Estate sector is an eye catching destination for
global investors. The population is increasing day by day and it will increase unexpectedly
in the coming years, rapid expansion in the education sector, job opportunities
and medical care will force the demand for residential and commercial spaces.
From the previous few years, a large number of people have been also coming up
here. Some of them are seeking to purchase lavish properties and investment in
the residential sector. Increasing the numbers of people is unexpected here, so
it will increase the demand of housing units.
By introducing the recent stock market and RBI
presents the foreign banks’invelovement, it helps a lot for increasing the
sales of residential property. In this year, steady housing demand will be very
important and big factor for nation economy and industry will focus on the
emerged demand. Although,
the realty sector is loaded with higher prices because of there is little
possibility of decline in the prices of houses in the most micromarkets. The construction
cost has enlarged by 40% in the coming two years, while government taxes and
premiums have gone up significantly. It reduces any scope for cheap prices, in
spite of weak market. Bank’s disinclination to lend to real estate
companies has led to enlarged cost of borrowing, addition to the overall cost.
Thus, all these factors will result in a rapid increase in the prices in improving
market conditions. The housing industry will recover at fast pace, if a stable government
is shaped after the normal elections in 2014.
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