The sky-rocketing prices of Properties in Delhi NCR, on one hand reflect the bright side of the realty sector in the region, and on the other, shatter the dreams of middle-class buyers. The big leaps in the value leave many wondering whether they will ever be able to stack enough to own a home at a decent location. Overall, the buyers' sentiments and moral get a severe jolt with unabated circle rates and eventually, it leads to a situation where demands plummet. The present situation is not much different and the threat looms over the real estate sector in the capital.
The Story Behind The Price Rise Infrastructural development in the region entices big players to enter into the realty markets of the region. With too many competitors vying for the same assets, prices are bound to inflate. With demand-supply chain getting stressed prices jump up without showing a respectable harmony with the actual value. This eventually leads to a bubble that may burst anytime and impact the whole economy. There are multiple factors that act together and contribute to indiscriminate price rise in the sector. Here's is a list of a few.
- Rise in business opportunities in sectors such as IT/ITES, BFSI, etc.
- Rising employment and higher disposable incomes
- Easier access to bank finance charged with affordable interests
- Tax benefits on buying residential properties
- Rise in young and earning population, nuclear families
- Migration from rural to urban centers for livelihood and better lifestyle
The factors mentioned above have resulted in an unsustainable value appreciation in the cities real estate sector. The bubble that has been created may burst anytime and lead to losses. Even the big economies like Japan, Australia, Britain and USA have been victim of such colossal prices and eventually market reversal.
The Market Is Not Too Grim Yes, there is a threatening bubble effect that's creating doubts in the mind of investors, but the situation is not out of hands. The economies that have been engulfed by such crisis were different from ours-that is a big encouragement. If we can maintain a good overall economic growth and prevent the demands from a sudden free fall, then the crises can be averted or more precisely its impacts can be nullified to a great extent. But till then, it will be wiser to accept the reality that Properties in Delhi NCR are under the crunch of colossal prices.