Our regular readers must have noticed that we have become quite inactive recently. We are not posting, sharing our opinions or exchanging our experiences with our readers on a frequent basis. Well, you are correct here! We have become dormant from last 2 months just as the sector itself looks inactive due to several reasons. Let’s have a look at these reasons & their effects on the Real Estate.
Financial Year End
World may celebrate new year’s eve on 31st December but for corporates and financial world, the new year eve is on 31st March. All the financial books and accounts are settled in the March-end. Every year around this period, the real estate and investment sector suffers a seasonality blow. People generally hesitate from making new investments in any asset class around this time due to taxation issues & paper formalities.
This is one of the reasons that there is no noticeable activity in Real Estate from last 1-2 months.
Due to the General Elections in the largest democracy of the World – India, the equity markets are experiencing a roller coaster ride. With strong wave of change in Government, the markets are reciprocating in a non-deterministic manner. This is creating a huge confusion and restlessness in the equity and investment markets and investors are shying away from making any investment until the markets achieve stability.
This restlessness has also been passed to real estate which is adding more to the realty doom.
As discussed in our earlier post, Effectsof General Elections, 2014 on Real Estate <link>, the General Lok Sabha Elections are creating a lot of turmoil in Indian Realty Markets.
Closing Remarks: All the above mentioned factors are creating a negative environment for Real Estate but very soon the market will bounce back to greater heights.
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