There was a period, real estate markets experienced significant fall in the year 2009. But, those nightmares are no longer be able to strain anyone as latest 5 years significant growth in this industry assuring good signs for all. Economy in India slowly regaining its status and property prices started to soar once again all over. Here, one fact should be identified without fail that 2009 downfall may be impacted on sales of the properties, but prices been stable.
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At present, property rates are soaring high and many real estate giants are planning to increase their prices up to 20% by the end of this year too. If this is what the future predicted for this industry, then it is tough to count up on this industry for investment needs any longer. Let us see some of the actual figures and facts those are associated with this industry at present:
- Indian property market is at present 3rd largest industry in Asia and contributing 6% of the Indian gross domestic product to a tune of US $50 billion per year and up to US $ 1 trillion.
- So far acquired foreign direct investment revenue in this industry since its acceptance in the year 2005 and until now is US $ 7.7 billion. It was US $ 2.2 billion in the year 2009 between April and November.
- There is another important fact that should be mentioned here. Last year, Bombay reality index fallen to 70% and this was resulted into losing major players in the industry stocks up to 90%.
- The highly priced properties in India at present are with the cities Bangalore, Mumbai and Delhi. Surprisingly, these price figures are experiencing close resemblance to the prices of the London, Tokyo and New York.
- Apartment prices are nowadays witnessing significant price rise in almost all cities in India and these prices are exuberant with metro cities like Bangalore, Delhi and Mumbai.
- Government and RBI witnessing this growth in this industry as asset bubble formation and making cautious measures in order to avoid damage. Banks are suggested implementing precautionary measures while lending on properties those are with high prices.
- Definitely too much growth can be dangerous and it can show adverse effects at any point of time. Government should come up with a perfect property policy in order to avoid slump or bubble burst within this industry, which can result into irreparable damage for the common man that purchased properties at this huge cost.
- There were few reforms in this regard and the legislature kept forward since 2007 too. This legislature to regulate Indian real estate industry is facing significant hurdle for getting approval and may be industry is creating roadblocks for its approval too.