Real estate investments on a downward curve: Experts


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Real estate is losing its sheen due to price stagnancy issues, demand-supply mismatch and snail-paced infrastructural growth. Real estate experts believe that the trust quotient in the property market has been severely hit due to these factors.

Real estate investment has long been considered a good option, right up there with stocks and gold. However, observing the recent market trends, realty experts have turned naysayers!

Vinayak Satyarthi, a Mumbai-based property consultant remarked, “The demand is a bit low as of now. Although it is difficult to give the exact figures, there is about a 20 per cent drop in realty investment inquiries in Mumbai in the last 12 months.”

Realtors attribute the dip in investor sentiments to the lack of appreciation in property prices. Vacant properties and unstable infrastructural growth are believed to be some of the other reasons. Commenting on the bleak real estate scenario, Deepak Kapoor, a property consultant based in Delhi, said, “There is a lack of trust vis-à-vis real estate. People are not assured of returns if they invest in any piece of property in general. In Delhi, there has been a yearly dip of 10 per cent each year in real estate investment inquiries in the last five years.”

The confusion over the trust quotient in the property market has led to a slowdown in investor interest. Currently, demand in real estate is mainly from end-users.

Will the real estate scenario improve in the future?

Observing the paradoxical nature of the Indian real estate market, Sandeep Ahuja, Chief Executive Officer, Richa Realtors, said, “If one was to go by the trend in the history of Indian real estate, it has been a booming market and an investor’s dream. However, keeping the current market scenario in mind, it is a possibility that the market has reached its saturation point and further appreciation in property prices is unlikely.”

It is certainly not good times for the industry if you look at what the experts have to say. Real estate has got a bulk of its share via investment over the years. If the investment proposition does not improve in the near future, it will indeed be a case of alarm bells ringing. What is worse is that there has been a certain slide which has been hard to stop. 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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