The global financial doldrums has had a significant effect on the construction activities. Construction is an essential part of any countrys infrastructure and industrial development. It is the second largest economic activity next to agriculture. Even though the real estate scenario in India is witnessing a slump, immovable property prices are stagnant in the state.Despite the escalating property prices and skyrocketing interest on home loans, the demand for real estate has not gone down. Contesting this claim, Gurpreet Singh of Propertyvertical.com says that the real estate sector in UT has registered a drop in sales by 30 per cent in the last few months.
The construction cost has not moved in any direction. It is same as that of last year. In the same period, bricks prices have gone up by 33-35%, while the cost of steel and cement has come down a little as compared to the last years prices. The labour rates have also escalated upto 5-10%.In fact, this is considered to be the best time to buy property. Buyers waiting for real estate prices to scale down could miss the opportunity as prices were only set to go up further, said Gurpreet Singh, Sales Manager, Propertyvertical. In fact, there could be further increase if steel and cement prices shoot up. The analyst considered this as the right time for the genuine buyer to invest in Chandigarh as there are higher possibility of good negotiations as compared to the outrageous prices in the year 2005-06, and was unimaginable for them to invest in the right property
At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.
More : newdesignworld.com
Send an E-Mail for India Property Enquiry!
Related News from India Properties
Be cautious with Indiabulls Real Estate at current level
Rajesh Jain of Pranav Securities is of the view that investors should be cautious with realty and Indiabulls Real Estate at current levels. Jain told CNBC-TV18, Despite the aggressive pricing, we have seen DLF and the financial might, the issue has sailed through very well and I think it augurs well because it has set a very aggressive benchmark for valuations in the entire sector. A lot of people are equating it to a bubble but like I was discussing with you, you dont become so big in India unless you really have some merit and I think DLF has a
Affordable housing is in vogue
With rapid urbanisation, one of the biggest challenges is to provide affordable housing to city dwellers. Affordable housing has perhaps been the most neglected segment of the real estate sector in the past, but today it is attracting large-scale investments from private developers as well as equity funds. The current situation in the real estate sector has pushed the demand for mid-market housing in a big way. Most of the real estate players have shifted their focus to mid-segment and affordable housing now, making it the need of the hour. Seeing this, it is advisable that real estate companies turn
We are not financiers, but builders
How deep is the problem? You have earlier talked about a 25% drop in sales volume for DLF and 50% for the entire sector. There will be a substantial decline in volume. But 25% or 50% drop I referred to was before the RBI went in for fresh round of rate cuts. The RBIs move will have a positive impact on the sector. The entire industry is looking to government to mitigate the impact of global downturn on India . What are your expectations? The government needs to take three important steps. First, bring down interest rate for home buyers
Real Estate finding a new track in Indian economy
A big impact of recession is seen in the worldwide market, where many big companies posted big losses, asked for a bailout and even filed for the bankruptcy. The recession had such an impact on the world over economy that even a core business of a particular country went in loss with many citizens pulling their hands off from investment part. Same happened with the Indian real estate market, the most bullish sector where not many hesitated before putting their money forward for an investment related to some plot, flat, office, shop etc. In the month of September 2008, when recession captured
Asias hot property market booms - but China may face growing risks
A housing-market meltdown may be wracking the U.S. economy and shaking the financial markets, but in Asia, the question is how to cool things down. From China and South Korea to India and Singapore, housing prices are soaring amid strong economic growth and surging demand from developers and upwardly mobile families who want to upgrade their homes. Of all Asias markets, Chinas is the hottest - although the boom is creating problems there, too. Housing inflation is pricing some people out of the market, and authorities worried about excessive development are raising interest rates and taking other steps to curb lending. More :