Is Indian Real Estate in Boom or Decline?

Is Indian Real Estate in Boom or Decline? This is the primary concern confronting everyone related with the real estate market right from the common laborer to the policymakers at the helm of the Government machinery - be it property dealers, real estate consultants, infrastructure development companies, construction companies, materials manufactures and dealers, property buyers and sellers, and you name who not. There is a background for this apprehension. The real estate scenario has been vibrant in India for several decennia now, barring a recent interregnum. But during the recent global economic meltdown there was slump in the Indian real estate scene. Reportedly, the industry is back in the saddle again and the market is gaining momentum.

Market analysts are of the view that by the end of 2009 the Indian real estate market will be poised for a boom. As industry analysts say, the property market in India is all set to enter a recovery stage. Sector-specific and macro-economic factors will play as catalysts for this metamorphosis. Jones Lang LaSalle, the leading property consultant says, "economic recovery during CY 2010-11 is likely to reinvigorate the interest of foreign investors in India's real estate market. We expect enhanced capital inflow in the real estate sector in the medium-to-long-term". An IMF study shows that the economies of the advanced world are expected to contract by 3.8 per cent. While so, Asian economies such as China and India are estimated to grow by 5.4 per cent. This estimated growth of the Indian economy will set the ideal ambience for a real estate boom in India.

The property in India is in a reviving mood due to other factors also. The market is witnessing a renewed interest property investment in the residential sector. The recession has made property prices come down which has made residential units more affordable to middle-class people. Another factor is the competitive interest rates offered by banks and financial institutions. Again, the revised salary for the Central Government employees under the latest Pay Commission recommendations, higher pay scales in the private sector, NRI investment, etc. have lent a new fillip to the real estate market in India. Alongside these developments, realtors were quick to realize that affordability is the new mantra for a quick sale and they have devised plans accordingly and have launched affordable low-cost units. This new customer-oriented planning has further lent a boom to the emerging property market in India.