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Market Trends in India

 

After a considerable period of hibernation, the real estate market in India is looking up. The real estate market trends in India indicate that the worst is over. Major cities in the country like Mumbai, Delhi/NCR, Kolkata, Chennai, Bengaluru, and Hyderabad etc manifested an upward swing in the property price. This happened despite the economic meltdown due to mortgage subprime crisis in United States. However, at one point of time, the real estate market had almost stopped growing.
 
Nevertheless, this trend didn’t last long and soon property owners were able to get back on their feet. The improvement in real estate market in India can be attributed to a couple of reasons. Let us take the scenario of the housing market first.
 
Real estate market trends in India – The Housing Market
One of the main factors that helped the housing market to stabilize is increase in purchasing power of the individuals and ability to remain consistent with their spending power.
 
For instance, buying premium property in a prime area is no longer a problem. This has been made possible by the private as well as the public lending institutions in the country that are offering home loans at affordable rates.
 
Therefore, it is not uncommon to find a borrower buying an apartment in one of the innumerable housing projects that are coming up in prime areas.
 
As such there were very few borrowers who actually fell behind on their mortgage payments. Two factors that helped in this real estate market trends in India are –
 
  • Lower loan-to-value ratio
  • Sufficient liquidity
 
These 2 factors have made the consumers less susceptible to the housing crisis. But it will be wrong to say that not a single borrower was affected. There are exceptions though.
 
Real estate market trends in India – Commercial market
As far as the commercial real estate market is concerned, there are few factors that have helped the commercial real estate market grow in India. They are –
 
  • Improved standard of living
  • Rise in mall culture
  • Growth of IT and ITES sector
  • Real estate as investment vehicle etc
 
More and more business houses are turning to the real estate market with the hope of getting good returns. And few of them have struck gold. As we are getting more inclined to the mall culture, the demand for shopping arcades, parks and plazas is increasing.
 
Not only that educational institutions like colleges, schools, and training institutes are being built in different cities in the country.
 
Real estate market trends in India indicate that the IT and ITES sector has contributed immensely to the growth of real estate in India. With the increase in the number of multinationals opening their offices in the different cities, more and more office spaces are coming up leading to growth in commercial real estate.
 
Since this generates employment, workers from other cities opt for rental property. So, this has given rise to sale of land/plot, office space and rental accommodation. It has also given rise to demand for rented premises.
 
Real estate market trends in India and the economy
The growth in real estate is ascertained by how much it contributes to the GDP or the Gross Domestic Product. According to CREDAI or Confederation of Real Estate Developers’ Association of India, towards 2010 end, we can expect the price of property in real estate market to get restored by 90% approximately. It states that currently the values have nosedived by as much as 20% to 35%. So, if you have some cash at hand, you can opt for your dream home.