Is Indian Real Estate going to sustain the jolt?
The real estate market has witnessed of global slowdown from last couple of years. Due to Recession, less supply and high interest rate of home loan, homebuyers have lost their faith in real estate market and affordable housing remains a dream for Aam Aadmi.
According to the several sector watchers report, prices of property have fallen down on worldwide level. As per reports US real estate market fell by 3% in the first quarter comparatively previous quarter 1.1%. Property prices are frequently falling from last 57months. Whereas several analysts have showed signs of improving market as prices are down but in some market prices remains stable and market may hit the bottom by the end of the year 2011 and then begin to recover. Though despite all the predictions of analyst Chief Economist Mr. Stan Humpshires believes that prices won’t hit bottom before next year and will fall by another 7% to 9%.
On the other hand in Southwest Florida property market closes with the largest drop and sales dropped to 8,800 units. As far as new listing trends concerns it indicates a 24% decline in the last April 2010.
Downturn in real estate market has affected severely to UK also, as announced projects in 2008-2009 is still languishing. Though according to the fresh reports that prices of units have increased to some extent but yet UK Property market subdued. As there was a minute recovery but sales remains standstill. According to the RICS report that there is 29% fall recorded in house prices and in the month of April house prices declined by 1.4%.
When matter comes to Dubai, if one can’t afford home in Mumbai buy in Dubai. As Dubai’s real estate market is comparatively cheaper than Mumbai. According to the fresh reports prices in Dubai will decrease in the Q1 of FY2012. Dubai is facing downturn in property business due to the massive new supply in the market. As per the survey reports the percentage of supply share of homes in Dubai was about 79 percent apartments and 21 percent villas.
Approx 25,500 units are likely to be completed by the end of the 2011, so new supply of residential properties in Dubai is expected to slow down by 30% comparatively 2010.
Apart from all these reports or worldwide downturn in property market but Indian real estate market has different story as Indian real estate is booming particularly in North and South India it’s a highly lucrative business. And from last three years Indian Real estate market has grown to 100%. But India is not located on other planet it has to face the downturn sooner or later as the recent reports showing indications of slowdown is ahead like “FDI (Foreign Direct Investment) in India has down by 25 percent in April-February 2011.”
