A sudden ban on the existing Rs. 500 and Rs. 1000 currency notes shook the Indian economy and real estate sector which was evident after the third quarter of the financial year 2016-17. The announcement of demonetization and implementation of the Benami Properties Act for unregulated properties took place in the same year. Economists predicted the growth rate of the real estate sector to slow down more than ever as a result. Read more »
The Indian real estate sector has come a long way since the 1990s’ by becoming one of the fastest growing markets in the world. It is not only successfully attracting domestic real estate investment but foreign investments too. The growth of the industry is attributed mainly to India’s growing population, rising income level and rapid urbanization. However, despite the positive outlook for the sector in the coming years, it is battling challenges. Read more »
Macroeconomic factors influence a country’s economic outcome on national and regional level. Gross domestic product (GDP), employment rate, inflation rate, interest rate, Foreign Direct Investment (FDI), stock performance, government policies, and production cost are the major economic factors which affect economic growth. In India, the construction business in the real estate sector is the second largest in terms of employment generation. Read more »
Liberalisation can be defined as the reduction of legal restriction and economic liberalisation can be defined as privatisation. It is associated with transferring the ownership from public sector to private sector (Sally, 2007). In the year 1991, India faced a severe crisis of foreign exchange reserves which were at an all-time low. In the aftermath of the events, many sectors received a boost due to sudden increase in FDI (foreign direct investment) inflow. Read more »
The real estate demand in India was subjected to fluctuations since 1991, when economic liberalization took place. The period between 2001 and 2008 saw high growth in the real estate sector while it experience drastic slowdown from 2008 to 2014. At present, this sector is again witnessing decent growth in some parts of the country even after demonetisation.
Real estate supply refers to a schedule that describes the quantity of commercial space or number of housing units supplied at varying prices. The rising economic performance in India has increased affordability and living standards in the country, particularly the upper and middle class. According to SIC (2015), the Indian real estate sector has emerged as a major contributor to the socio economic development of the country. Read more »
Bengaluru is known as the “Silicon Valley” of India because 40% of all companies are in the service sector and is a hub for Information Technology (IT). The city has consistently ranked among the top 20 destinations for investment in South Asia Pacific (SilliconIndia 2015). It has also become a favorable destination for a wide range of citizens, from the middle-class working population to the high class industrialists and even retired people for a number of reasons. This trend picked up after 2000, when India became the preferred destination for software development. It propelled the city to the top spot in India for short and long term investments. This also created an initial boom in its real estate market (The Economics Times 2015).
Housing is a challenging issue all over the world, particularly in developing nations like India. It has turned into a top need of the administration and the society at large to address this issue. According to recent research, by 2025 over half of the Indian population will live in urban settlements looking for steadiness and wage (Anon n.d.). Read more »