Why online real estate in India is less compared to other countries

The real estate industry in India has witnessed a time of great economic change especially in the last decade. It is truly brilliant at the rate at which India has risen from the ashes as compared to most other global economies after the Global Financial Crises. Though the economy in this country did manage to bounce back, but the question is as of today and now – understanding the current state of the real estate segment in India, is this industry prepared to use this quick recovery to its best advantage to be at par with some of the well established real estate markets like Asia Pacific and the USA?

To answer this question the ecosystem that comprises the real estate industry needs to be understood. There are architects, developers, stakeholders, government and regulatory authorities, banks, private equity players, buyers, property consultants and agents.

In India over 60% of the households earn an average of INR, 70,000 per annum, with almost 20% of the households cannot afford any type of housing through their income. Smooth access to transit and immediacy to daily destinations does not allow for creation of low population density in the urban areas which is dependent on self-acquired modes of transportation.

The unavailability of land within the cities has increased the infrastructure projects in the suburban areas in most of the metropolitan cities in India, with multiple residential and commercial developments dotting the skyline. This has led to increased unaffordability in land with residences coming up in the exteriors of the suburbs, thus impacting not just the affordability of the residential market prices but also the travel and recreational costs.

Neighbourhoods that make for poor transit lead to traffic congested cities, long commuting hours, higher air pollution, increased green house emissions and significant decline in open spaces. Vis-a-vis, neighbourhoods that are well connected are more efficient since they connect residents to shopping, work and recreation without straining or while limiting the strain on the available natural resources and on the public transit system thus making for better communities.

 In the Indian real estate information inefficient market, majority of the sellers tend to misrepresent and use unfair practices to sell to purchasers. Indian cities rank differently on various parameters of real estate transparency. Coupled with multiple taxes like service tax, valued added tax, minimum alternate tax, stamp duty, property tax etc., and unavailability of reliable and easy methods of property tax calculation with different regulations in different states makes it difficult for the buyer to make an informed choice. Add to that certain disputes in taxed being imposed onto real estate developers and purchasers.

Real estate brokers and agents are integral to this industry, but India lacks a national association to provide certified licenses to brokers and regulate their conduct through education and ethics. This has led to this particular sector being unregulated and unorganised, thus leading to high search time and costs for the online real estate purchaser.

Effects on Kerala Real Estate Because of Lulu Mall

Are you thinking about planning a shopping trip over the weekend? In case, you happen to be in Kochi, then this is precisely the place you should be in. This is because the city is the new home of Asia’s largest shopping mall, Lulu here. This particular development has caused a ripple effect on the economy here especially in the real estate sector. Continue reading this post to know more about the impact that Lulu has had on the realty industry here.

Asserts Dominance

While contemplating whether you should invest in property in Kochi, there are several reasons that you should. For one, if you own real estate here you will be able to assert your dominance here. It is because of the fact that more investors are now showing interest in making investments here. As a result if this there is a whole lot o other projects that have been take up in this region by other realty developers. In addition to that this region has become more conducive to business prospects.

Skyrocketing Value

Another major impact that was felt in this region with regard to real estate here is the fact that the realty value here is skyrocketing. According to statistics, the prices have grown two-three folds in the past few months. It must be taken in stock that the mall has been operational for less than a month or two but has been able to create a substantial impact here.  This can be attributed to the growing thrust that investors are now placing in this region as they have been able to see positive results from this investment.

You Get What You See

There is another logic that most investors are banking in on now. Here, they feel that they will get what they see. Lulu has been able to attract large audiences, reaching out to people across a number of levels. The universality of this concept and the overwhelming response that this project has been able to generate is being viewed as a green signal by other developers.

To sum it up, the success that Lulu has achieved as the largest shopping mall in Asia is overwhelming, especially because it is based in a mini-metro, Kochi. However, it is needless to say that this venture has been received positive response and now more investors are chalking out projects here. For this reason, the realty business here is booming and has recorded an all time high.