Turbulence Revisited?

Some of our readers must be wondering why we stopped writing further! What happened after our post – ‘Risks in RealT Sector’ that we discontinued our regular practice of giving opinion on RealT matters?

To be honest to our readers, we moved out from the Web-World to the RealT-World to gain some hands-on, first -hand experience. And we are not-so-happy with what we experienced in last 1.5 months L

The RealT market doesn’t provide very rosy picture in the Real World. We stuck to our ideology and started with a fast emerging tier-2 city, Jaipur (Rajasthan, India). We surveyed, researched & roamed around the barren lands of the city in a heat of 46-degree Celsius [:O] But the results of our survey & research were even more horrifying than this heat! Here we go with the overview of our findings:

  • Sudden awareness of the anticipated-growth in Jaipur RealT Market in Investors & Developers
  • Tremendous increase of Supply in the form of land, flats & colonies – resulting in the mismatch between Demand-Supply curves
  • Abrupt & obnoxious increase in the property prices
  • Liquidity crunch – both among the suppliers & buyers: resulting in the infinite deadlocked loop
  • Stringent policies by the Jaipur Development Authority (JDA)
  • Illogical and unexplained formation of local colony association, restricting new constructions in the existing colonies
  • Movement out of Jaipur in a radius of 30-40 kms in hope of future investment returns

With all the above points and many more to add to them, the RealT Sector in Jaipur seems to be going through a very turbulent phase currently. This state of the market reminded us of the sub-prime crisis of 2008 and we couldn’t help but get goose bumps. This picture somehow gave us an indication of formation of a property bubble in Jaipur.

This may just be the formation of a bubble, but the scenario has turned to be pretty horrendous right from its beginning. Going by our principal of calculated risk taking and doing a sustainable business, we returned to our RealT Web World, waiting for things to take proper shape. Will you?

Disclosure: No stands in Jaipur Realty Market.

---- Welcome back to RealT Horizon ;-) ----

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