Indian Real Estate Saga: Soaring Prices, Dwindling Demand

Real Estate Property at Makaan.com

Indian real estate is burgeoning nicely, from year to year, and from decade to decade. Though the extortionate prices and scams have diluted its stronghold to some extent, It is still going great guns. The demand may have seen a depreciation in  cities like Delhi/NCR, yet the call for properties is very much there in the scene. And why that shouldn't be? With the population boom, the demand for both residential and commercial spaces is bound to prevail. The upper-middle and the elite class have a predisposition towards luxury houses and plush villas. Thanks to the  cornucopia of wealth that they possess that the demand for extravagant housing never ceases to exist.

As far as the middle-class is concerned, the real estate scenario says a different story. The considerable appreciation of rates has staved them off from buying even 1 or 2 BHK flats. Go and hunt a 2 BHK in the localities of Delhi like Kalkalji, Rohini, Vasant Kunj, Malviya Nagar, Chankya Puri, Golf Links, Sirifort Road and you will rarely get one with price below 50 lakhs. In certain localities, you will find a 2 BHK flat costing you as high as one crore! Of course, this middle-class is unable to invest their savings on such a high-valued property, so they end up cheaper localities, much below their expectations and preferences.

Same is the case with the rest of the country. Hebbal in Bangalore has seen an appreciation of 58%,  highest among all the Indian cities. In Hinjewadi too, the prices have escalated by 50% in the first quarter of 2013. Dwarka Expressway in Gurgaon, Kalyan in Mumbai, Gachibowli in Bangalore say the same story. The developers have successfully created an artificial demand for soaring the prices, thereby denying the access of ordinary buyers to the fruits of property in India.

So, what our covetous developers are doing now? In order to save the dwindling demand, they have now resorted to providing exclusive offers and tying up with international brands. But that too would work well for the upper strata and not the middle-class buyers. There is dire need to break this property bubble and let the prices correct. Once the bubble bursts, real estate India shall touch new heights.

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