Post by david123 on May 2, 2009 18:37:22 GMT
Of late, India has been ranked among the three hottest regions for property growth in the Asia-Pacific region over the next five years. A renowned law firm, Allens Arthur Robinson has reported that the city of Mumbai has registered a rental growth of above 50 per cent along the year. India real estate is being noticed the world over!
The last few couple of years, the residential as well as commercial real estate market has experienced a period of massive demand making it a hot market for sellers’. Demand for housing has increased manifold with a simultaneous fall in the vacancy rates. The capital values have increased and thus disrupted the balance of supply and demand. On the other hand there has been a somewhat slowdown in the residential market. The primary reason is being attributed to the soaring prices and interest rates which have adversely impacted affordability, Developers and builders, who were selling their entire projects in a few days, are now taking months to sell their unsold projects. Builders and developers of the real estate in India need to realize that market change is normal and must direct their attention towards the factors which have resulted in this new emerging pattern. They need to understand the difference in demand from the point of view of the end users and investors. There is a requirement for developing strategies that consolidate the above-market returns over a long period. These will have to be based on a clear understanding of the macro and micro market cycles and smart market timing. According to the trends seen, the growth in real estate is of three kinds; the demand for residence, the demand for office space and the emergence of big retail markets across the India.
The last few couple of years, the residential as well as commercial real estate market has experienced a period of massive demand making it a hot market for sellers’. Demand for housing has increased manifold with a simultaneous fall in the vacancy rates. The capital values have increased and thus disrupted the balance of supply and demand. On the other hand there has been a somewhat slowdown in the residential market. The primary reason is being attributed to the soaring prices and interest rates which have adversely impacted affordability, Developers and builders, who were selling their entire projects in a few days, are now taking months to sell their unsold projects. Builders and developers of the real estate in India need to realize that market change is normal and must direct their attention towards the factors which have resulted in this new emerging pattern. They need to understand the difference in demand from the point of view of the end users and investors. There is a requirement for developing strategies that consolidate the above-market returns over a long period. These will have to be based on a clear understanding of the macro and micro market cycles and smart market timing. According to the trends seen, the growth in real estate is of three kinds; the demand for residence, the demand for office space and the emergence of big retail markets across the India.