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.


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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.


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The Goa Property Market – a Quick Overview


Once a tourist heaven, Goa has now opened up its doors to the real property market. The property souk of Goa has loads of options – from villas to beach houses. The following post explores the real property market of Goa. Read on to know more.




Introduction


Deep blue seas, vast skies stretching up to the horizon – and sun-kissed beaches – Goa is definitely a haven for travelers. Tourists from all across the globe flock to this state every year; whether to soak up the sun or to experience a long stay at a traditional Goan house — the place offers absolute ecstasy.

However, while the smallest Indian state offers an exciting experience in terms of travel and tourism, it also happens to be one of the leading states offering the best Gross Domestic Product (GDP)—almost two times higher than that of the entire country.


The Goa Property Market


While the state continues to be one of the best travel destinations, of late, the property market of Goa has been in the news. Interestingly, among all the Konkan properties, the property market of Goa has been pretty much in demand with the end users. Investors have been rolling out enough money in order to capitalize the potentials of the Goa residential property market. One of the biggest factors contributing to the growth of the Goan property market is the tourism boost in the state.

Since tourism is one of the most popular revenue generating segments in the state, tourism has propelled the growth of the property market to a great extent; industry experts opine that a recent trend of second hand homes being sold off at a bigger price has been noticed. This shows that end-users are even considering buying a property in Goa for investment purpose as well.


Trends within the Goa Property Market


Interestingly, the Goan property market has been a favourite with foreigners and also non-resident Indians. While Goa is yet to come at par with other locales like Phuket, Maldives and Bali, NRIs have started shifting focus to this state. End users can choose from loads of options in the residential souk of Goa. These comprise the following:

  • Hill Villas and Apartments
  • Farmlands
  • Beach Properties and Apartments
  • Commercial and Retail Spaces
  • Portuguese style villas and traditional Goan cottages


As the place happens to be a tourist heaven, even foreign tourists have started taking a keen interest in Goan properties. It has been found that foreigners have been inquiring about apartments and beach properties in Goa to a great extent. France and United Kingdom tops the list of foreign tourist in this category. Reasons adhered for the same is the low crime rate along with the lifestyle of the state that is highly westernized in nature.

Another trend observant within the real property market of Goa is that NRIs have been flocking to the region quite often. NRIs especially from the Gujarati community have been flocking to the region for investment purpose. This is because; Goa is the only Indian state that offers

The real property markets of the region have recorded a substantial hike of 15% to 20% in the last two year. Apartments in areas in Vasco and Panjim are some of the hot properties within the Goa property. These areas have sold off multiple inventories within a few months of their launch. Leading developers like DLF, Riviera, Parsavnath and Nirvana Nest have launched several real estate projects within the state. Some of the prime locations where you can find properties are Anjuna, Vasco, Vagator and Calangute.

Overall, the property market of Goa has been performing extremely well in terms of investments and also mere purchase powers. Those who are willing to invest in beach properties or a property that is a little different from the normal ones – the Goa property market has several options for them.


Author Bio: A follower of the latest trends in Real Estate, Sampurna Majumder has been lending her expertise to 99acres.com by writing articles and blog posts on the in-news topics such as these. 



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