Indian real estate has been making rapid strides for the past few years with property prices in metros zooming upwards. A major part of the credit for such an indictment goes to growing economy leading to a considerable rise in disposable income, favorable government policies, and exponential growth in IT/ITes sector, retailing, and hospitality.
Private builders have got large exposure on the bourses.
In the recent past, half a dozen of them successfully raised large resources
through initial public offerings (IPOs). However, there are some concerns
like high interest rate on home loans and a sharp increase in property
prices which are turning dream run for Indian residential real estate sour.
Soaring equated monthly installments (EMIs) and hardened interest rates
are forcing investors to keep the residential market at bay. This has
led to postponing of purchases. A trend of buying second flats as investments
have been off loaded due to firm property market.
Commenting on the real estate scenario in Indian, Rajeev Talwar, Group
Executive Director, DLF underlines the mismatch between demand for property
and its supply. He emphasizes on the need for new measures and grounds
for private builders to buy and sell land subject to rules and regulations.
Taking a view at commercial
property in India, there has been a significant
increase in rentals and prices. Demand for office space has got a major
boost by a high proliferation of IT companies.
Fast developing cities
like Delhi and Mumbai are commanding high rentals which have soared
from Rs 90 per sq ft to Rs 400 per sq ft in a year. Noida-NCR is witnessing
the same. However, the suburban boom in the southern metros is yet to
come.
