July 13, 2024


Mad about real estate

Indian Property Trends Post Recession: Residential Sector, A Safe Bet

Real estate is the hottest investment sector in India owing to mass structural developments witnessed by the country. The large scale growth of IT sector and the massive increase in migration of people has aroused the need for better housing and commercial facilities. This enormous demand has stimulated real estate builders to shape up more and more buildings across all realty sectors, be it residential, commercial or retail. From national property developers like DLF, Omaxe, Raheja, Parsvnath to state-based builders such as Kanakia, Ackruti, Akshaya, Dhoot, Lok Housing, etc., everyone has been creating structures at a fast pace.

It has been realized by leading realty experts and consultants that the Indian real estate holds immense potential for growth. There has been tremendous hike in property prices excited by the upcoming developments across the cities of India. The exponential growth in property rates is conspicuous not only in metro cities but also in tier-II and tier-III cities. The onset of boom in real estate had propelled up the prices and they have been skyrocketing since then. In spite of the global economic meltdown, real estate industry is back on track and blossoming in full swing. Though, recession had affected the nonchalant behavior of realty market all over the country, it has been able to gradually switch back to the path of progress.

During the industry boom, realty prices not merely doubled but trebled thus, becoming one of the fastest growing sectors. In last five years, both property prices and rental values have seen a considerable rise in almost all big and small cities and towns. A rise of at least 25-30{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} is recorded in metros in both commercial and residential sectors. Residential sector seems to be a favorite with both property developers and property investors. Undeniably, after the recession blows, everyone wishes to play safe and is thus, engaged in tapping the foolproof potential of housing sector.

According to real estate analysts, housing sector is bound to grow manifold in the coming years. The demand for flats, apartments, villas, houses, etc. can never really die down in wake of future developments and projects expected in India. Realty soothsayers also add that residential property holds sure shot potential for reaping high profits in future. Property developers are being wary by investing higher amounts in residential spaces than commercial and retail as rental values of latter has been falling since the occurrence of recession. Retail rents have dropped as much as housing rents have grown which is nearly 30 percent.

There can be innumerable reasons for colossal demand and the subsequent expansion of residential property in India. In Delhi and NCR (especially Gurgaon, Noida and Greater Noida), various factors can be accounted to this growth. Some of them may be:

-India is hosting Commonwealth games (CWG) this year and so there is a huge need for accommodating the spectators and players visiting the capital.

-Increasing set up of numerous industrial units in nearby regions of Delhi,

-The recent declaration of entry of foreign universities to the country capital has boosted the need for better infrastructure and housing facilities, etc.  

-There is already a huge supply deficit for housing and accommodation facilities which has to be made up for.

Thus, it is apparent that the boom in property sector, specifically housing is here to stay for a long period of time. The building up of independent houses, duplexes, multi-storied apartments, villas and the upcoming bed and breakfast (B & B) is going to boost further. Residential sector is an absolutely safe bet for investments in short term as well as long term.