2. RE/MAX Mumbai Gujarat Maharashtra
Lot of inventory
• There is a lot of inventory yet to be
possesed
• So investors have bought the units
but no one to use it.
3. RE/MAX Mumbai Gujarat Maharashtra
High interest rates
• Historically high interest rate has
kept EMI unaffordable
• Hence salaried class still cannot buy
homes – which is the bulk of Indian
consumer
4. RE/MAX Mumbai Gujarat Maharashtra
Plan pass complexity
• Thanks to regulation changes by
State governments : Passing a plan
for a new project is very difficult.
5. RE/MAX Mumbai Gujarat Maharashtra
Central government regulation
• The new central govt regulations
require all requisite permissions
even before a single booking is
done.
• This increases the cost
• It also delays new
projects
6. RE/MAX Mumbai Gujarat Maharashtra
Sand mining restriction
• Critical component of new
construction- Sand is now a scare
commodity
7. RE/MAX Mumbai Gujarat Maharashtra
Inflation
• High inflation increases the cost of
construction
• Reduces the disposal income of
people to save for real estate
investment
8. RE/MAX Mumbai Gujarat Maharashtra
Slow Economy
• Economy growing at less than 7%
doesnt have enough saving for a
real estate boom
• Economy set grow at 5% for few
more years.
9. RE/MAX Mumbai Gujarat Maharashtra
Life of property
• Life of a property is 50 years and it
changes on an average 5 owners
before its redeveloped.
• The total sale of second hand car is
more than new cars in India
10. RE/MAX Mumbai Gujarat Maharashtra
A lot of options :
• The past real estate boom has left a
lot of options
• Each unit is unique and hence
requires special selling