Global investors are showing positive interest in Indian Real Estate Sector. Also the urban population rush forward in the coming time along with the demand of education, health, employment growth and because of this, it will escalate the demand of residential as well as commercial space.
The urbanisation has been growing very well and as migration to the cities has boosted the purchasing power. Recent stock market rally and positive RBI rules to permit foreign banks into the country’s guarded banking ecosystem due to rise in Real Estate Sector.
Though the real estate with high price tag may increase the possibility of reduction of home price in most micro markets. Approx 40 per cent increase in the construction cost, while premiums and governments taxes have shoot up because of which price reduction is pretty hard. As banks are unwilling to lend money to the Real Estate Builders because of which they are impelled to increase the price.
With constant increase in infrastructure development in smaller town & cities with high earnings, improved living standards and bank loan facility. The recent step to introduce Reits or Real Estate Investment Trust show progression. Reits is a great stick to valve cash flow into the Indian economy and even help out small investors by offering better financing and investment choice.
