Realty Bubble Likely to Burst

The slowdown in the economy is believed to be affecting the country. According to realtors it is forecasted that the days of remarkable returns are over. While developers are finding it hard to sell their units, home buyers are staring at meagre yields on their investments. According to a report by a global realty consultancy organization, it has stated that investments in the residential real estate market in India in 2013-14, is slated to bring in about 10 to 20 per cent. This will be down from 30-40 per cent in 2012-13.

People’s interest in realty investment has come down according to developers. According to the chairman of a renowned developer, it has been noticed that today, people are careful about investing in assets such as a house which requires huge investment. This is considered to be one of the reasons as to why the off take of homes across the industry is not at the desired level.


It has also been noticed that generally, people are not coming showing interest to buy inventories. It is believed that the sector is facing the fear of slowdown. Moreover, heaping up of unsold inventories has put pressure on returns. This trend is likely to continue throughout this financial year. According to executive managing director, of a renowned realty, he stated that they expected some change in the realty sector. In some projects in NCR areas, this could be up to 20 per cent.

Many people keen in investing in the sector are waiting and watching. With regard to this, developers are trying out various methods to attract the attention of the buyers. According to the market experts, the continuing liquidity crisis along with political instability will keep the property market in NCR restrained this year.