Building Block

The market is looking towards an upward slope. We have the likes of Global real estate giant IREO pumping in $500 million in various infrastructure projects in India over a period of seven years. The organization is among one of the largest investors in the country’s real estate sector. They have already invested $1.5 billion and are still having another $500 million available in cash for further investments in our projects. The company currently has 13 projects and is in the process of constructing an IT SEZ (special economic zone) in Pune.

After nearly four years of India Real Estate boom, the prices dropped 20-40 percent since their peak, property sales to an all time 50 percent low leaving developers under immense pressure. It was time for market correction.

One of the key indicators of economic activity is Commercial real estate transactions, which is showing first signs of stability after a free fall during the early part of this year. In my view, the market shows initial signs of holding on with possibility of prices not sliding further. This is certainly not a recovery as yet, but at least we can say the downturn has been arrested. Most Real Estate companies are getting enquires showing signs of demand trickling in. It is certainly a wait and watch scenario to gauge demand sustainability.