Modi Effect On real Estate Industry in India
Ever since BJP has won the elections with thumping majority, sentiments in the market have been very positive. The pundits in the industry ( all around ) are very optimistic and are looking for positive results in the near future. Prime Minister Modi has taken some right steps in the right direction, and has fueled the speculations even further. Most of the industrialists, Traders , Manufacturers and other related industry owners are looking for a turn around. Indian real setae Industry had also taken a downturn about two years ago and now is looking to bounce back.
But is it really going to happen that Real Estate will bounce back because of the Modi effect, if yes then what is the intensity going to be. There are several questions that need to be answered before we really start feeling good about it. Real Estate in India has grown many folds in the last 10 to 12 years. Some of the places like Mumbai, Delhi NCR , Bangalore Pune etc. have seen unprecedented growth, in the real estate industry. The reasons for this kind of growth can be many, but mostly attributed to the new working class with more disposable income backed up with Hefty bank loans. Once the wagon wheel starting spinning, more and more people joined in and started investing their idle money in Real estate. This created a sort of a whirl pool, very thing started going up and only up. with the increase in prices people saw increase in profits.
With the downfall of the economies world over, the foreign investment into India started declining, the pay packages of people working in the multinational companies , BPOs , KPOs. etc started coming down , some people even lost their jobs. This effected the real estate market adversely and hence the number of transactions in the market went down drastically, creating an illusion of over supply in the market. Its been about two years now, the job market is a bit stable, New government is taking right decision for the industries to grow, which will certainly create a positive environment of growth. Although we are all very positive about the growth in the real estate segment, that is bound to happen in the near future, but the pattern will be more sane this time and steep growth in the real estate graph is not expected.
This is good in a way for the real estate segment, as the steady growth is healthier than the growth which ultimately creates a bubble that bursts with time. In the end I would like to say that Modi Effect will certainly be seen in the Real Estate segment , it will take time , but will come with the requires pace with Growth Prospects for all.
Arvind mehtani – 9811022205
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