EFFECT OF GLOBAL RECESSION ON INDIAN REALTY SECTOR AND ITS FUTURE DEVELOPMENTS

Abstract

The recession around the globe from 2005 till present has been considered as the toughest phase compared to Great Depression in 1930’s. This had led the collapse of almost all large financial institutions, banks and stock markets around the globe. This indirectly affected the housing market that resulted in dispossessions, proceedings and extended vacancies. In India the effect on Reality sector was decrease in demand for Real estate in terms of Demand and supply as most of the working population had to undergo reduction in salaries and few layoffs. The Reduction in Rentals of commercials, Projects became stagnate, Deceleration in infrastructure projects, troubles to get fund, Unemployment and Shortage of skill workers forced the builders to reduce their prices. This paper attempts to analyze the impact of global recession on the reality sector of India, makes an effort to analyze the present overall Realty sector situation, and examines what policies are taken by Indian Government and business models that can be adapted to overcome the effect of recession.