» National Real Estate

The slowdown of the economy has taken its toll on the national real estate scenario. The people have lost the spending power and the rise in price of the real properties has seen a heavy reversal. The people are now not inclined to invest in real property and storage as they were even a year and half before. Moreover, the real property market is being influenced by various factors like loss of jobs, decline in output, downturn of the economy, the reluctance to go for loans related to real property, and many more. People are trying not to move out from there locality and preferring any development in the locality only.

The influence of the downturn of the national economy on national real estate is being seen in the slowdown of the income generating real property sector. The demand for the office spaces, malls, warehouses, hotels and even residential buildings have almost died down and this is not an arbitrary statement. The national associations of the several property organizations are saying so. The abysmal drop in the asset value of the real property has brought tremendous pressure on the real property companies and they all are performing below there their potential. They have almost lost their ability to revive and are now waiting for bold policy decisions to climb out of this abyss.

As per the surveys on national real estate , the confidence level has reached a depressing low. The executives of the real property industry feel that the level has become much worse than what was about a year ago or even at the beginning of this year. They have a darker vision of the year to come and without any optimism they declare that the next year will see worse. The asset prices will continue to drop further and this trend will persist along the year. This is the forecast for any property, especially the commercial property. This has been related to the decrease in access to the capital market and the tightening of the debts and equity market. The available credit in the market have also dwindled significantly though they have some sort of an optimistic view for the year to come as far as the equity market is concerned.

Some suggestions for the government are doing the rounds for improving the health of national real estate and of these the primary concern is related to credit availability for the commercial real property sector. The associations want to have a new financial structure for the credit policy which will have a favorable influence on the real property health. One suggestion is for the banks to give loans for job creating projects which will be shot in the arm for both the real property market and the job market. The other suggestion is to allow foreign money for investment in real property.

The national real estate picture is not a rosy one as more and more foreclosures are taking place. Surveys show that most of the properties available in the market are bank owned, reposed by the bank and placed in the market. In spite of these properties going at an all time low in the past two years there are no takers and the fall is supposed to be further in the coming months. The national index tells a story based on the whole nation but the scene in the urban areas is worse. The bubble that was generated just an year ago has burst and people are simply praying for sunny days.

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