The Real Estate Market in India

India’s economy has been fluctuating considerably over the last two years. The country has been battling several economic issues like food inflation, falling currency value, fiscal deficit, etc. which have had a direct impact on the real estate market in India. This is especially relevant for the residential property market since the economic prosperity of the citizens is directly proportional to the demand for homes.

In the first half of 2013, major cities like Delhi, Mumbai and Chennai have seen a sharp decline in the sale of residential properties. Though Bangalore and Pune have done better, because of the IT expansion in these cities, it is so only by marginal standards. One of the key reasons of this is that the prices of properties in the major cities have been rising despite the fall in demand. According to data collated by Global Property Guide, property prices in Delhi have seen the sharpest spike over the last year, by almost 60%, higher than in any of the other cities from the 43 countries surveyed. Property prices in Mumbai have gone through the roof making the city all the more unaffordable. Under these circumstances the only recourse is for thecities to expand their boundaries and the builders and developers to lower their profit margins and price expectations, so as to keep the market green and going.