2013 To Give Welcome Relief To Real Estate Market Indore
Some five years back Indore being the economic capital of Madhya Pradesh was looked with great scope for real estate
. Speaking particularly in 2011 it was a blooming time for real estate developers in Indore. Enthusiastic niche developers and big shots in the industry from all over India were looking for channelization to come in the real market here. Simultaneous growth in industrialization, economic sector and living standards gave positive prospects and with this some very grand projects have landed up here. Some are over and some are under construction for a promise.
In 2012 the real estate picture was not that great. With interest rates getting higher while the rupee depreciated and all these Macroeconomic indicators responsible for bringing the fiscal deficit and further responsible for global economic uncertainties for Indian economy the real estate market is not untouched with the effect. Stagnating demand in tier 1 cities due to repeated increase in interest rates has added up into decreased sale of residential properties. Inflow of foreign direct investments has slowed and developers are finding themselves under high debts.
Though the tier 2 and 3 cities as Indore has gained popularity in terms of investment but with the economic scenario in the country being uncertain has affected market them also. During summer 2012 before purchasing properties in Indore wait and watch attitude was seen in customers. This slag has definitely affected the market till December 2012.Even the festivals time could not get that much spark in the property sector. This means that two major problems that is the increased cost and decreased demand are being faced by the real estate developers. An oversupply situation with reduced demand in the market is the current scenario. Along with this the higher cost of completion of projects and liquidity crisis is making them bear the burden of higher interest and capital costs.
With 2013 knocking the realtors, market builders, agents and investors all are speculating the situation for next year. The Forbes forecast presented in august 2012 would be quite a relief for all in that case as there will be substantial percentage gain over the supply excess. Though there would be price hike limit with increased number of houses but there also will be a modest rise in home prices. 3 to5 percent appreciations in house prices estimate for the coming year. Builders would see an increased sales volume in 2013 but will be presented with challenges within.
So overall it would be a welcome relief but it should not be mistaken with a boom.