Despite slowdown in the global economy, the demand for housing sector will remain strong in the country, and elsewhere in Asia. But the sector will not witness the kind of price appreciation it has seen in the last couple of years. The global slowdown of economy will have positive as well as negative impact on the Indian real estate sector. Les Sohar, founder of sharworldhomes.com and International Real Estate specialist with Re/Max, says that on the whole, because of the domestic demand-driven market, the recent developments in the international front will provide good opportunities to home buyers to fulfill their aspirations to own a house. Despite marginal slowdown of Indian and some other parts of the Asian economy, it is expected to grow at healthy rate of 7.5%, which will not only reduce the impact of the global slowdown but also make it one of the most attractive investment destinations in the world, along with China.
The downgrade of US economy to AA+ does not indicate any impending default by the country in meeting its obligations in the near future, but it certainly hints at a slowdown of its economy. Besides the US, other developed countries in the Euro zone are also facing a slowdown in the economy. This will affect the export of IT services from India and exports from other Asian countries, which contributes to the demand for residential and office real estate in the country.
However, even in the worst-case scenario , Indian and most of the Asian economy will continue to grow at around 7%. To meet even 7% growth, fresh real estate demands will be there. However, there could be some glut for some time as oversupply situation in certain markets. But in the medium to long term, investment in real estate will continue to give net positive return, which is higher than inflation.
No comments:
Post a Comment