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 ;-) ----
