It’s Modi Sarkaar – Real Estate Prices are at War!


Confused? The elections are not over yet & we have published this post already! We agree that it is only a matter of time before the title of this post becomes a reality. The title of this post sounds a little lot controversial. We would request our readers to first spare few minutes to read this post before forming any opinion.

As we had clearly mentioned in our earlier post that the real estate market is going through turmoil & one of the reasons behind that is the uncertain political scenario in India. When we tried to decipher what will happen next, we came up with the following findings:

#AbkiBaarModiSarkaar, #WeWantModi & other trends are trending high on Twitter & other social media these days. A lot of air has been created around Modi being the next Prime Minister of India & everyone (mostly) is speculating high gains & social development with a change in the governing body of India. #RealEstate is also no exception to the speculation. Analysts & specialists are betting on high gains in this sector too. This is due to positive sentiments & anticipation of new & investor-friendly Government policies.





FDI in Real Estate

With a change in the Government of India, the much talked about FDI in Real Estate will become a reality & that will give a boost the Indian Realty Sector. With the improvement in infrastructure & basic amenities due to this foreign investment, many new housing & infrastructure projects will flow in the Indian markets causing the sector to lift up.



Realty Stocks Rally

Stalkers of Stock Market must have noticed the recent surge in the otherwise failing real estate companies’ stocks. If not, just have a look at the following charts:



BSE Realty Sensex


One can easily notice the sudden increase in the realty sector of Indian markets. Reason – positive sentiments for the anticipated change in the government!


Enthusiasm amongst NRIs

As we have already communicated in our earlier post about NRIs <link>, the non-residing Indians already had an opportunity to make investments in real estate India the rising Rupee against Dollar is creating a virtual race among them to reserve a property for good investment as soon as possible.

Moreover, as is a known fact that a major chunk of NRIs belong to Gujarat State of India. With the air of Mr. Narendra Modi becoming the next Prime Minister of India, all these NRIs are extremely keen on making the investments.



Disclaimer: The above post is just a thought child of the writer & doesn’t have any political intentions. This is just an analysis of future possibilities in the real estate sector. Investors should make their calculations & analysis before going for any investments.


------ Thanks for reading RealT Horizon :) ------

Financial Year End, General Elections, Uncertain Equity Markets: Doom for Real Estate?


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.


Equity Markets

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.





General Elections

As discussed in our earlier post, Effects of 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.


------ Thanks for reading RealT Horizon :) ------

Related Posts Plugin for WordPress, Blogger...