Jews of India Forum

Commerce => Doing Business => Topic started by: Adams63 on September 14, 2007, 09:54:44 PM

Title: Indian economy favorable for real estate
Post by: Adams63 on September 14, 2007, 09:54:44 PM
If the Indian economy continues to grow at the current rate, it is expected that continuing demand for commercial and residential space will keep the growth of real estate sector at the present level. In fact, with some needed correction in the prices growth in realty sector may be even faster.

It is thought that the present correction in property prices is due to interest rate hike which is not expected to last long. The prices are projected to go up if demand continues to outstrip supply. It is suspected that only a greater supply than possible can contain the price rise in cities like Kochi.

Recent increase in interest rates on home loans decreased the demand for and led to a drop in prices by. However, this increase in loan interest rates only postpones a prospective customerís decision to buy the house. Since the requirement does not go away, demand will soon resurface.

The price correction is more pronounced in relatively smaller towns. The prices in various cities witnessed in the range of 5% to 30%. However, it is predicted that the fall will be reversed as soon as interest rates fall to a single digit range.

With economic activities increasing even in small towns, the lease rentals of residential units in Kerala have gone up. At present, big corporate houses with large production units in the areas, are buying up a large number of apartments for their staff. Individual requirements have also picked up as economic activities are on the upswing and Kochi apartments ( and flats experiencing an outbreak of activities.