deals, only 13 in the first half of 2013. Analysts attributes this to an
uncertain market, and the sudden deceleration in India’s economic
growth, the major factors for which are the record devaluation of
rupee against dollar and political deadlocks However, despite a
slowdown in the construction market and reduced number of
investment worthy projects in India, real estate continues to be
the fourth most invested sector by PE funds. At the same time
there are good reasons to be optimistic about the prospects of
the real estate scenario of India. There is every reason to believe
that Indian economy will be able to turn around in time to arrest
the free fall of rupee against dollar. That will definitely help to lift
the shadow of uncertainty currently hovering over the market
and prove to be a shot in the arm for the real estate sector. It is
also anticipated that the Government will show further
understanding and cooperation towards the real estate sector of
the country and be proactive in resolving the political stalemates
and introduce timely economic reforms that are posing to be
major hindrances in the development of this extremely potential
sector. Once the real estate sector gathers the necessary impetus,
new doors to more investable options will be flung open,
attracting a hefty investment from the core investors, both
domestic and abroad.
Real Estate Market in India is characterized by Greater availability
of Information, Emergence of transparency and liquidity, Entry
of international real estate, Consultancies, Competitive pricing,
Realization of large commercial projects IPOs by developers,
Gradual organization of the markets in the Tier I cities and
Growing Market Demand. In the recent past there has been a
consolidation of positions in the market as developers are
stretching their capacities to the maximum in order to meet the
growing market demand, which in turn has encouraged large
projects with sourced financing. The IPOs by large real estate
developers have led to organization of the market in the Tier I
cities, but the Tier II and Tier III cities still demonstrate the traits
of an unorganized market. Whilst the Indian real estate market
still lacks transparency and liquidity compared to more mature
real estate markets, the increasing requirements of multi
national occupiers, as well as the influx of international property