2023-09-29 07:49:08
The real estate market of India seems to be showing signs of resurgence. Good proof of this is the number of new projects in the country, which have reached 2012 figures, with pre-sales from important developers rising sharply.
With a insufficient supply and a growing population of the wealthy class, together with the deterioration of existing buildings in the country, this activity is expected to become increasingly frenetic. Even though these problems are not new, the current government’s attempts to renew a sector that suffered a major crisis in the 2010s appear to be working.
The corruption was the main cause of the collapse on that occasion, with small developers that inflated invoices, irregular land purchases and unreliable bankers. For this reason, in 2016 the government added the obligation for promoters of pay higher interest rates due to delayed projects, which generates a greater need to complete the properties on time. Thus, bankruptcies are gradually reducing, despite the fact that the cleanup in the sector is far from being completed.
Initially, the standards gave rise to a period of stagnation. However, after this period the most important developers have seen their valuations grow significantly. This implies an interesting increase in confidence that has translated into purchases that have grown by more than a fifth compared to what was recorded a year ago, especially in areas such as Bangalore, Hyderabad, Bombay y Pune.
It is worth highlighting the influence that the sector is having on the economic growth of the country, which has posted profits despite the slowdown in exports and the technology industry. Not in vain, the construction involves nearly 7% of India’s GDP, in addition to being important for the steel, glass and cement market. In this way, the shadows that the sector showed in recent years seem to be dispersing, giving way to strong growth in a market that, for the moment, seems to be in good health.
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