Tuesday, December 23, 2014

Non affordability and high prices affect the realty sector demand

The demand cannot be expected to pick up as there are no first time buyers because of non affordability and a big chunk of black money involved which the masses do not have and they have no avenues to make also. The demand is normally from those who have various means of incomes and are from well employed segments having access to liberal loans and sources of black money. Since of late the fear of tracking black money is in circulation, many avoid investing in houses. Besides, the return on investments is also unattractive and the prospects of getting out of the investments through sales are bleak. The taxation policies and the hassles involved in acquiring properties also discourage people from investment. The old theory of renting a house is more wise and finding more acceptance and practical these days. Fools invest in houses and wise people stay is becoming a reality once again.


Dr.T.V.Gopalakrishnan

(this comment appeared in Business line dated 23rd December against the article demand pick-up evades realty) 

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