Published on: 22 September 2014
In the last decade, particularly post 2004, when mall culture started to flourish in India, the real estate sector has undergone a big transformation owing to IndiaÔÇÖs growth momentum. Initially, malls mainly concentrated on metro and other major connected cities. This scenario is fast changing, with global and local brands competing on the same platform.
Apart from malls, the major change that has affected real estate markets across India is improving infrastructure. Be it growing rail network, metro trains, airports, flyovers, or new national highways, improved connectivity across India with metro and neighboring cities, villages, and states have made a big difference. This new infrastructureis generally surrounded by SEZs and business hubs, constructed around these areas. Residences and commercial places have started growing around the same infrastructure and/or malls.
The phenomenal development of infrastructure, malls, and commercial hubs has helped residential real estate boom in those areas. The cycle started big growth driven mainly by the real estate boom since 2004-05 in India. The major Indians cities ÔÇô Greater Mumbai, Delhi, Bangalore, Noida, Pune, Gurgaon, Chennai, and Hyderabad have displayed humongous growth in the real estate sector.
The real estate sector boom always has positive effects on other connected sectors such as cement, construction, furniture, auto, and electronics. The same phenomenon was seen during 2004-2008 in India prior to the global slowdown. This real estate story has helped India post higher GDP numbers consistently over the years.
Post 2008, with the credit crisis, global slowdown, and recession in many countries looming large, the thing to note was that India got marginally affected.
Here we have plotted some pointers with respect to the Indian economy along with real estate sector from the pre-2008 era to until 2014 and beyond…
Positive Investment Environment
Optimism in real estate sector
Global financial crisis leading to negative sentiments
Pessimistic attitude of investors
More pain for the Indian economy
Real estate markets
Better days, going forward
Game-changing economic reforms to boostinvestments
Although we have seen a few bad days in the real estate sector from 2008 to 2009, one has to remember that this was for a brief period during which the real estate sector got into troubled waters. The Indian real estate sector continues to deliver above average returns in the long term and is expected to become the favorite story of global investors in times to come.
Financial Planning & Product Research
I agree to the Terms & Conditions
I would like to receive property related communication through Email, Call or SMS.