The real estate sector in in India is one of the most important element in attribution of country growth. India’s property market has been in a downturn. After nearly four years of a real estate boom, prices have dropped 20-40% since their peak, property sales have fallen over 50% year-on-year (y-o-y), and developers are burdened with many unsold and unfinished projects. As we are coming close to year 2010, house prices have softened, and will likely stay this way – at least until there is an economic turnaround, not expected before 2010.
On the other hand, Technical Group did a study recently on Estimation of Housing Shortage, an estimated shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12) provides a big investment opportunity. The study is based on the opinions of over 270 international real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.
In another article by Financial times USA, it is expected that by 2020, the average age of Indian in the country will be 29. This means more young people working in cities and urban areas thus creating more demand for houses/apartments.
While this is what we see at a country level, the market in nellore has become stable and improving. In some areas the prices have gone up. there has been a huge demand for apartments all over the city. This demand is coming from the industrial developments that are taking place.
A recent study (Sep 2010) conducted by TV9 supports the growth in nellore city.
On another note, TV5 conducted a summit in May 2010 with prominent leaders in the real estate market also supports the growth.
