Current Market Conditions

India’s real estate market is on a high growth curve. Individuals feel that property is always a safe bet. Companies realize that there is a lot of opportunity in bricks and mortar business. Companies and individuals alike are therefore investing in real estate. Property prices are on the up and up. To make India more attractive to foreign investors, state governments have come up with special economic zones (SEZs) which provide attractive tax cuts for companies setting up offices in them. This in turn has led to major real estate companies making large investments in such SEZs. Besides office buildings, real estate companies are also investing in residential property, shopping malls, and hotels.

Some of the key players in the Indian realty market are DLF, Unitech, Ansal API, Godrej Properties and Oberoi Realty Ltd. DLF is India’s largest real estate company. It currently has presence in more than 30 cities across India. It has constructed residential buildings, townships, commercial complexes, IT Parks, hotels, multiplexes, etc. DLF is also involved in the construction of metro rail tracks in Gurgaon that will connect its offices and residential townships with the main metro tracks of Delhi Metro. This project is nearing completion.

On the flip side, property has become unaffordable for people in the middle and low income ranges on account of the high prices. Furthermore, some Indian economists suppose that the rise in prices is just a property bubble. This will cause the industry to incur losses which will have the effect of arresting the growth of the industry or even lead to negative growth. These economists believe that the current prices of property in India are unrealistically high and market forces will cause adjustments to happen, which will lead to a crash.