Sunshine Post Slow Down

Bewilderness say DEMYSTIFICATION continues in either situation of SLOW-DOWN or SUNSHINE. But certainly, now it is a ‘SUNSHINE’ status after passing through a short & sudden stage of ‘SLOWDOWN’.

As it has been ‘MYSTIFYING all the way, all trade – pundits analyzing & sudden Global ‘Slow-Down’ – did it pulled the situation worse?.

The REALTY (specially Residential) will stay a long-term attractive preposition in our country. Hopefully the cycle after the current showdown is going to be the one which is more efficient & self sustaining.

Mystification is not in one field, it has been surrounded in multipliers of complexes.

Mystification surrounded 1 year back is being cleared by clearing the float of short term / High Expectation of Realtor goes vanishing.

As matter of fact, the Indian real estate is going through a vertical in sense structural variation changes. “Since 2001, it has grown exponentially. It is by increasing urbanization, better affordability and the on-going multiplier coefficient effect on housing demand.

The life style changes, because of growth, & naturally resulting ultimately for Housing from their higher disposable incomes.

From bigger development and rental fields, offered by the reality markets together with strong economic growth & unmatched demographics, has helped the sector attract large overseas, investments too i.e. ‘SUN SHINE’ in real.

Further more, today developers are facing liquidity crunch as well as 30% rise in construction cost. Sky touching property prices have reduced affordability & lowered end-user demand. So, does all employ that the boom is over, signaling a road down hill? Certainly not.

As dealt in my earlier article of two strengthening factors of BRAND & MATURITY. So, once the slow down gipps-up the weaker players will move to back-burners. In the process the companies with ‘Brand’ & Maturity – the established developers operationally will emerge as ‘WINNERS’ – moving away the existing ‘mystification’ while purchasing ‘HOME’ for young & able buying couples etc.

In the trade of Realty, we say it is the time of ‘CORRECTION’. This will be positive outcome leading to improved affordability, creating significant demand again.

Developers all around in the country has already amassed huge land bank. Accommodating the supply, demand to consumption levels need to be raised. This level correction would bring down the price. This will make developers – price takers, rather than price-makers.

And above the phenomena of BRAND & MATURITY amongst the possession (the two) partners with certainly reduce the mystification – cloud of mystify cleaning – part by part.

India has been devoid of sophistication in the Realty field, which we can just see happening i.e. institutionalization of investment, PE Funds, REMF hedge funds, REIT funds, insurance companies, pension funds, banks, & other institutions would master, invest or operation in office, residential, hotels, industrial retail space etc. etc.

The synergy I found, while in West Germany in early 90s and Australia since the beginning of this 21st Century.

But very different from the western economy, Indian Real Estate will be fit enough to stay as a staying longer as attractive proposition. Behind these misty-clouds of current slowdown (presumably stated), which would grow a long lasting and worthy of self-sustaining.

Dr. Shailendra Kumar, who figures in “WHO IS WHO” in Asia, with his global-exposure in the Building Engineering, as an extended working after UN assignments as well in Germany & in other European & American continents,. By education a Civil Engineer from one of the national best institutes to Masters in Arch. Engg. & Management, contains only after obtaining Ph.D. in Environmental Engineering from CA, U.S. Back Home first careered with TATAS, followed a stint in L&T & Unitech, has been associated with others i.e. Omaxe, Eldeco etc.

Meltdown of States EXCHAQUER - a Global Impact is betting physical impact on common man purses; some Nations less some more but certainly it make the world CHURN-AROUND - a first thrust in the 21st Century of negative financing & made the people feel lack of ‘liquidity’ which was enough to do the world going aspiring for the future DAYS ‘MERRY’- MERRIER & MERRIEST, “Fine”, but did the falling economical ‘HIT’, the slow down of realty market is indeed? Did this contributed making the mystifying Realty worse? Or it has just passed away touching the tangent.

Is it virtual? – A brighter

Sun-shine after shad out.