It is possible that activities such as IT and retail uses high note because a lot of the big names in the business world about India potentially rich market. But only in this country, there is one sector that draws attention to the flat areas. Needless to say, the industry is none other than the country's real estate sector.
Well-known cities, people come into the real estate business, as a very lucrative opportunity for its staggering profits hit chance. Cities like Delhi, Mumbai, Noida, Kolkata and many other Indian huge asset-bank real estate and business elite culture and mass industrialization drive going infrastructure influx really looking card.
People who have properties in his own name over the cities of India also earned a great week, a month or a year for large companies, building factories and shops rental income should land in which the interests of the landowners. Homes like apartments, duplex or areas in these cities the prices are very high, due to its high population levels, the demand for residential habitats of these cities, also jumped, giving the amplifier housing loans and home insurance business.
However, in general, companies that come from the real estate sector in India is facing several problems due to the global liquidity shortage nemesis. Right from the time it started, almost every company in the sector, clocked a loss (or even a staggering loss), mainly due to the fact that the stock market failure, which is why the key Indian real estate players such as Unitech and DLF have gone big time.
The Indian real estate growth spurt is in large part due to the burgeoning outsourcing and information technology (IT) industry. By 2010, the IT sector alone is expected to require 150 million sq.ft. In various major cities in space. New companies mean new offices, homes, shops, a short commercial, residential and retail space.
This growth is facilitated by favorable demographics, increasing purchasing power, existence of customer friendly banks and housing finance companies, professionalism in real estate and reforms initiated by the government to attract global investors. People have more purchasing power and exposure to organized retail formats, re-use of structure. Even small towns want to keep track of their city cousins??culture. As a result, retail projects have been mushrooms over even B class cities.
This new way of life quite drastically changed the face of Indian real estate, it can be in city centers, urban areas or new yuppie towns. Small shops, old fashioned bungalows and office blocks, things have changed in the luxury suites, with club house, swimming pool and sprawling greens. Instead of small shops have a humongous sprawling malls and office complexes
Because of the crisis, new home sales fell steeply plan forcing real estate companies to come up with huge discounts, free gifts and a variety of other types of systems. More recently, in Mumbai rental prices in major cities, as well as the continued decline recorded in only 38% of the average rental rates fall. Meanwhile, Vilnius, IT hub of the country has also seen a correction in 6-28 per cent. Delhi has recorded more than 25% of declination and Hyderabad saw a decline from 25% to 28%.
Indian real estate slowdown has also affected the banks' mortgage portfolios because of declining demand for living space currently is. Some public sector banks such as PNB (Punjab National Bank) and SBI (State Bank of India) has reduced the housing loan interest rates for their products, which are now a major revival.
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