That is the question doing rounds in the realty market. And there are ample reasons for many to feel that way. I personally feel a major factor which is keeping investors or for that matter genuine buyers at bay is the overall economic slump.
No doubt sops have been announced by the government to bring the industry back on rails, but I don’t think they would in anyway raise the earnings of an individual buyer, who till two months back would have been on the radar of the hawks in the industry (property dealers), but now is more busy trying to retain his job.
With more and more companies announcing job cuts, employment has become the priority for many.
A headline in today’s ET read: “Real estate: No more an attractive investment”
And what followed below was an eye opener. Here’s what it said:
Investors have shed 50-60 % of their investments in realty stocks. Investors’ perception has been dealt a severe blow. Measures like interest rate cuts for low-value homes and correction in property prices don’t seem to be working. But a further 200-250 bps rate cut and a 20-25% price cut can spur demand. And people may once again start buying houses to live in them, rather than for investment purposes.
I think it’s high time Real Estate becomes what it was earlier – an avenue for providing people with shelter rather than an investment.
2 comments:
Kamaal ka blog hai yaar.
Realty business is finally getting 'Real'!
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