The picture for Indian realty continues to be rather uncertain at this time. While underlying demand drivers are intact, there is a tepid mood to invest as a result of uncertain worldwide growth. Interest rates also seem to be going the other way, namely up, whilst the rest of the World wallows in low interest rates, India continues to raise rates in the effort to curb any sort of inflationary pressures that plague it's consuming populations.
Transparency in the sector also continues to erode the customer experience and add to the risk factor for the consumer. An overhaul of the realty sector needs to take place from the top down to open up trade and improve sectoral performance. The Realty sector has the potential to add 1-2 points to the GDP and shift India into 4th gear. If it intends to lift it's citizenry out of poverty steps need to be taken to hit over 10% growth, as evidenced in the Chinese model to date.
As previously stated, the underlaying factors of population growth coupled with rapid urbanization rates, lend favorably to the continued stability of the Sector. I think the next up cycle will take place around 2015 onwards. Let's see how it all plays out.
Transparency in the sector also continues to erode the customer experience and add to the risk factor for the consumer. An overhaul of the realty sector needs to take place from the top down to open up trade and improve sectoral performance. The Realty sector has the potential to add 1-2 points to the GDP and shift India into 4th gear. If it intends to lift it's citizenry out of poverty steps need to be taken to hit over 10% growth, as evidenced in the Chinese model to date.
As previously stated, the underlaying factors of population growth coupled with rapid urbanization rates, lend favorably to the continued stability of the Sector. I think the next up cycle will take place around 2015 onwards. Let's see how it all plays out.
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