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Stock market slump a boon?
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Realty sector seems to attract many an investor, writes K. Sukumaran
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These are days when mixed signals come from different market sources, confusing the investor. While this may be true in the case of the stock market at the moment, it is not so in the case of the property market.The real estate sector in India has been witnessing almost unhindered upward demand graph. Some prominent reasons have been:
• Increased urbanisation followed by demand for both office and residential accommodation.
• Upward trend in employment potential, especially in the IT sector, leading to higher purchasing power with the salaried class.
•Easy and speedy dispensation of loans from commercial banks and other financial institutions.
• Promotion of high quality living by builders and promoters.
• Projected increase in property cost.
• Better return from investment in real estate.
• Tax sops
Some reverse trends in demand for houses/apartments began, in a limited way, when the interest on home loans travelled north in the wake of the RBI’s dear money policy to contain inflation. There was also a jump in property prices in the metros and second- rung cities .
Increase in the cost of construction materials dampened the spirit of middle income groups. The sudden about turn in the stock market from the middle of January 2008 has created fresh opportunities for real estate.
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Property Plus
Bangalore
Chennai
Hyderabad
Kochi
Malabar
Thiruvananthapuram
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