Black29
01-04-2009, 08:32 PM
India's real-estate is on the surge and getting bigger. It is therefore no wonder that the Builders in India (http://www.anzeraproperties.com/) are engaged with a number of new projects. The boom in commercial activity is being driven by IT and IT-enabled services. So, both commercial demand and residential demand, which is generated from the former is on the rise simultaneously. In the past few months, private investments in the real sector amounting to huge figures have been witnessed and announced. The builders and dealers have bought a large number of vacant plots with a view to develop residential complexes and commercial centres and several of these have earned handsomely by selling out the flats at premium rates in the recent years.
According to the market experts several foreign players are bringing in foreign capital. These earn lower interest rate in other markets as compared to India in which these investors earn high profits from the booming real estate market. So, even with the recent hike in interest rates it is unlikely that the demand in real estate sector will fall because real estate is primarily a sellers’ market especially in the metros and major towns across the India. The prices of built up properties have also risen but not as much as those of plots. The increase in prices of built-up properties has been around 35 to 50 per cent compared to about 100 per cent in the case of plots. Housing industry experts explain this with the logic that people are generally interested in building a house of their own choice. But another equally important aspect is that speculative buyers choose only plots for investment.
According to the market experts several foreign players are bringing in foreign capital. These earn lower interest rate in other markets as compared to India in which these investors earn high profits from the booming real estate market. So, even with the recent hike in interest rates it is unlikely that the demand in real estate sector will fall because real estate is primarily a sellers’ market especially in the metros and major towns across the India. The prices of built up properties have also risen but not as much as those of plots. The increase in prices of built-up properties has been around 35 to 50 per cent compared to about 100 per cent in the case of plots. Housing industry experts explain this with the logic that people are generally interested in building a house of their own choice. But another equally important aspect is that speculative buyers choose only plots for investment.