Residential sector becoming sole bright-spot for Indian realty firms

2008 and 2009 are certainly those years, which Indian and global realty companies won't like to remember. During these two years, realty companies were hit hard by the impact of global slowdown and a drastic fall in the demand for properties. The meltdown badly shook the investors' confidence and global markets fell like a pack of cards. People preferred to remain in their safety shell and also tighten their purse strings, and this was something which the realty companies didn't even think in their wildest dreams. Almost all companies in this particular sector suffered huge losses and many had to sell-off their assets to pay-off their mounting debts. Leading realty companies such as Unitech group and DLF group were clueless as to how to handle the overall situation.

At present, residential sector is probably the single bright-spot for retail investors in India. Though the sector did face the impact of slowdown, it is now showing revival signs. GDP growth, labour and market stability are among the various factors which will be crucial for the long-term growth of this sector. However, when compared to Western and European counterparts, real-estate companies in India are in a better health position and are expecting better balance-sheet figures in the upcoming months and years. In the recent few years, Bangalore, Hyderabad, Delhi, Noida, Agra, Kolkata and Ahmadabad are becoming popular destinations for these companies.

Indian realty firms are now looking beyond the geographical boundaries as well, and are making efforts to lure NRI customers. One such property exhibition is scheduled to be held in Kuwait, where the renowned property-developers will showcase their thousands of properties to NRIs. It is not only the Indian realty companies which are taking such initiatives, but even foreign companies are eying Indian investment in their countries. Malaysia is one such country which is holding a three-day property fair in India to attract Indian investment in its real-estate. Many such programs are in line and this will definitely give a much-required boost to the real-estate firms all over the globe.

From the customers' point of view, this is the best time to go ahead and turn their long-cherished dream of making a sweet home into reality. When compared to the previous few years, prices of properties have come down drastically. Banks have also cut down their home loan interest rates and many are also offering some special home loan plans. What more, banks have also simplified the whole-procedure for getting a home loan. In a bid to revive domestic demand, both realty firms and banks seem to have come together and are offering attractive home loan schemes to their customers, and the move is surely going to uplift the demand and may help the firms to pull themselves out of the recession blues.

Aradhana Gupta is an expert author. She has written many articles on real-estate firms and properties.