The period of recession has proved to be disastrous for economies all over the world but it was also a blessing in disguise for some. This period of slow-down helped investors in certain sectors chance to materialize their dreams by offering many realistic opportunities of investment.
Real Estate Fared Better Than Others
Many sectors of Indian economy were adversely affected during the recession phase such as aviation industry, travel and tourism, banks etc. On the other hand, the recession impact felt by the Real Estate Sector proved profitable in many aspects, to the end users as well as the builders. In fact, the recession has ushered in a positive change in the property market in the current times.
Recession, A Blessing In Disguise
The global economic recession witnessed a slackened period in the property market in India. The current high-income group comprising of the working population of MNC's also underwent an anxious phase of frequent layoffs by the employer firms to stabilize the occurred losses. Salaries were slashed down and the job prospects for varied professional qualifications witnessed no or few vacancies.
This disheartened economic scenario ultimately resulted in the decline of the buying power of the common man. As a result, the prevailing recession also made it hard for the Real Estate Developers to find buyers for their overpriced properties. Therefore in order to tackle the situation, developers adopted a strategic approach of low margins high-volume sale of properties. The strategy has given rise to the concept of affordable housing where realty developers have begun launching low-cost residential projects in Indian cities.
This has provided a much needed relief to the developers from the ongoing slump and endowed buyers with an opportunity to own a house at reasonable rates. In fact, the recession has stabilized the never-ending property rate hikes as well as restricted the monopoly of builders to tag properties with inflated rates. This has thus led to the surge of investors to the property market and resulted in a real estate boom.
Progress Consistent Post-Recession
The phase of recession saw the sellers having a real hard time while the buyers had the privilege of gaining the low cost residential and commercial properties. But the current period of post recession appears to be a boon for sellers too with prices soaring everywhere. The investors have started selling their properties on high profit margins, which were purchased at quite economical rates during the recession.
Bank Loans, Icing On The Cake
In addition to this, during the market slump, the banks have started offering loans on very low interest rates. Many property buyers may still enjoy the benefits of such loans in fixed plans. Besides, the property market during the phase offered many choices of affordable long-term investments such as investment in rental properties. Therefore, we can conclude that recession has more or less assisted in establishing a balance by restricting the burgeoning bargains of economies of the world to provide them with a fresh beginning.