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Indian real estate industry is undergoing a tough phase, caused by the weakening financial situation. According to experts, the situation might prevail for some time and calls for caution from both developers and buyers. The depreciation in rupee value, high interest rates, delay in completion and less demand have also been strong contributors of the situation. However, it could have been worst if there is no sale at all. But, here, sales are only less, significantly though, but not totally absent. Experts would like to hold on to this positive aspect as a respite. Data collected from real estate trends across the nation indicate up to 5 % decrease in property sales. Small-scale developers are facing more problems than established ones, in terms of sales. Reputed builders with projects in decent locations have retained good customer base. On the other hand, a large number of small scale builders survive the crisis with affordable projects. When affordability of high-scale residential housing turns in to a major issue, such projects seem to be the best option. Also, the rupee depreciation was expected to usher in NRI investments. However, on the contrary,many NRIs have shown hesitance in opting for Indian properties citing reasons of prevailing uncertainty. The present situation has forced leading lenders to come up with urgent restrictions on the amount provided to the real estate industry, yet another destructive development for the sector already weakened by negative surroundings. Experts point out that If India had good infrastructural development, then the ongoing crisis could have led to several affordable housing options for many. Usually, such development takes place in developed nations such as the United States. However, India would have to wait for several years to consider such an option. In such a scenario, wrong decisions might prove fatal. Investors and buyers should analyze the situation before arriving at a conclusion. The area, the prices and future potential are to be thoroughly examined for the most profitable decision in unfriendly times.
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