Post by helen on Mar 31, 2011 6:42:59 GMT -5
In Kerala Real Estate sector has not stagnated as in other parts of the world. The negative aspects are many, if the economic indicators are to be analyzed. Nevertheless, the established players are not at all affected by the present recession in the global economy and the subsequent decline in growth in the Indian economy. The leading builders are now on a buying spree to own properties in key destinations when the property prices have started falling from the highs that prevailed just a few years ago.
Mega townships and big infrastructure projects are already in the pipeline and awaiting government sanction. The possibility of new airports at Kannur at the northern end and another one in between Kottayam and Pathanamthitta districts has already resulted in phenomenal appreciation in land values near the project areas. Even though these projects are likely to fructify only after several years and with much delays, the land values have already moved up phenomenally. When the project actually gets commissioned, those who have invested earlier will be able to generate more profits by selling the landed plots at higher prices.
Despite the problems in the international economy, it is a wonder that there is no percolating effect in the Kerala economy. It has more to do with the growth and demand in the domestic economy. The crisis in the global economy has resulted in a decline in demand for office spaces and other infrastructures from Multinational Corporations. Built up spaces were in high demand in earlier times at the height of boom in outsourcing. Even in earlier times, the recession was not a continuous phenomenon. In recent times, there was not much problems with the Indian economy. But the present recession is mainly due to totally unavoidable circumstances that engulfed the global economy.
Mega townships and big infrastructure projects are already in the pipeline and awaiting government sanction. The possibility of new airports at Kannur at the northern end and another one in between Kottayam and Pathanamthitta districts has already resulted in phenomenal appreciation in land values near the project areas. Even though these projects are likely to fructify only after several years and with much delays, the land values have already moved up phenomenally. When the project actually gets commissioned, those who have invested earlier will be able to generate more profits by selling the landed plots at higher prices.
Despite the problems in the international economy, it is a wonder that there is no percolating effect in the Kerala economy. It has more to do with the growth and demand in the domestic economy. The crisis in the global economy has resulted in a decline in demand for office spaces and other infrastructures from Multinational Corporations. Built up spaces were in high demand in earlier times at the height of boom in outsourcing. Even in earlier times, the recession was not a continuous phenomenon. In recent times, there was not much problems with the Indian economy. But the present recession is mainly due to totally unavoidable circumstances that engulfed the global economy.
