Categorized | International

Residential Real Estate Market in India Battles Uncertainty

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India’s real estate market continues to face similar struggles to that of the United States. Many potential buyers remain hesitant to purchase a home due to uncertainty in the economy and real estate market. As such, construction companies are struggling, and have been forced to downsize causing major projects across the nation to be delayed.

One of the sectors hit the worst by market uncertainty in India is that of luxury homes. There are a number of different reasons for the abysmal luxury home sales figures, though one of the primary reasons has been the general overpricing that exists within that market. Many potential buyers are reluctant to pay more than a home’s actual sale value considering the overall state of the nation’s economy. Furthermore, with the glut of affordable homes on the market, luxury homes often tend to be overlooked due to their enormous prices.

The slowdown of the construction industry due to the poor residential real estate numbers will surely affect multiple areas of the nation’s economy. Residential real estate makes up roughly seventy percent of the construction industry, and now with a dwindled workforce, projects across the board are expected to face serious slowdowns. That means that office buildings and retail centers will likely have their completion dates pushed back.

There is hope that the real estate, and construction industries will see improvement in the coming months, though many developers are planning significant discounts on their services to make sure that they can achieve increased sales. As to whether the price discounts will be effective has yet to be seen, but both sectors are incredibly hopeful that there will be some kind of positive growth.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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