Showing posts with label downward trend. Show all posts
Showing posts with label downward trend. Show all posts

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 ;-) ----

Related Posts Plugin for WordPress, Blogger...