IS THE REALTY MARKET REVIVING

IT IS Realty Market Reviving

An overwhelming 79 percent feel that the realty sector has revived in the last three months, says a report

The last nine months (September '08 to May '09) has been extremely challenging for the Indian realty sector. The Meltdown affected sector, including contractors and property of asylum seekers. While the developers were unable to raise capital for their projects, was property of asylum seekers postpone purchases because of job insecurity and doubts about future earnings prospects.

Over the last three months (June '09 onwards) scenario has taken a positive turn, and the sentiments in the property market is an echo of some initial signs of recovery. According to the report 'The Real Picture ", performed by a realty portal, in leading metros and Tier II cities in India, an overwhelming 79 percent of national respondents believe that the sector has revived in the last three months, 11 percent are still waiting for the market to increase further, and another 10 percent are unsure if the segment has improved.

The study was conducted on the portal between August 11, 2009 to August 20, 2009 and saw participation from over 3271 brokers / real estate company nationally. Most of the respondents who participated in the survey belonged to the age group of 26 - 35 years. 

Signs of revival

The boom in the sector can be attributed to the steps taken by the government to infuse liquidity and reduce interest rates on home loans, and thus encourage people to invest in real estate. Obvious signs of an economic recovery has boosted property asylum seekers confidence.

Respondents across cities, believe that the Indian property market is on track to recovery. This scenario is repeated in both metro and non-metro cities, as a majority of respondents agreed that the property market has improved in both cases the feelings and transactions, although respondents from Bangalore and Chennai seemed less optimistic about this recovery.

Cheap housing need for hours

Realtors across the country are experiencing a great demand in sub-40 lakh segment, 66 percent of respondents said that most of Homebuyers today are seeking to buy houses in this segment. The same time, 26 percent of those surveyed received questions for houses in the range of RS 40 lakh to RS 75 lakh.

Respondents in Delhi, Mumbai, Bangalore and Chennai feel that the peak demand for properties is in accordance with RS 40 lakh segment. But there exists a significant demand for mid-segment (R 40-75 lakh). The luxury segment (above Rs 75 lakh) continues to have some risk takers. Among the metros, Bangalore has the maximum demand (75 percent) of affordable housing, followed by Chennai, Mumbai and Delhi with 65 percent, 53 percent and 52 percent of demand in the segment, respectively.