International Research Journal of Finance and Economics ISSN 1450-2887 Issue 24 (2009) © EuroJournals Publishing, Inc.

2009 http://www.eurojournals.com/finance.htm

Prospects & Problems of Real Estate in India
Vandna Singh Head-MBA Department Seth Jai Prakash Mukand Lal Institute of Engeenring &Technology (JMIT) Radaur, Yamunanagar Komal Lecturer, Institute of Technology & Management (ITM), Gurgaon E-mail: komal29m@rediffmail.com Abstract The present paper entitled “Prospects & Problems of Real Estate in India” is an attempt to reveal the issues concerned with real estate investment sector in India. This paper is concerned with the investment on real estate in India and the trends in the concerned industry. The paper has been divided into three sections. Section one deals with the fundamental factors affecting the real value like demand, supply, property, restrictions to use and site characteristics. Section two and three explains the causes and the constraints to the present real estate boom respectively in India. The paper also presents the suggestions and future prospects of real estate in the country.

Keywords: Real estate, property, prices, market, investment, income etc.

Objectives
The paper aims to examine the present scenario of real estate in India. In this broader framework, an attempt has been made to achieve the following specific objectives:1. To study the fundamental factors affecting the real estate value. 2. To examine the present factors of real estate boom. 3. To present the future constraints of real estate investment in India.

Sample Size
Out of the total companies working in India in the field of real estate 50 major players have been selected for the purpose of the study.

Research Methodology
The present study is of analytical and exploratory nature. Accordingly the use is made of secondary as well as primary data. The secondary data is collected mainly through various newspapers, magazines, Internet and RBI review. To supplement the secondary data, some primary data has also been used which is collected through interviews and personal visits to the various companies to know the present situation of the market.

However. Purchasing real estate requires a significant investment and each parcel of land has unique characteristics. so real estate industry has evolved into several distinct fields.Issue 24 (2009) 243 The present study is dependent more on secondary data. such as buildings. • Life estate: An interest in real estate which is granted to a life tenant until that person dies. including: • Freehold: Provides the owner the right to use the real estate for any lawful purpose and sell when and to whom the owner wishes. Introdection Real estate or immovable property is a legal term (in some jurisdictions) that encompasses land along with anything permanently affixed to the land. The interest terminates upon the death of the life tenant. Real Estate Business Includes: With the development of private property ownership. the word real means relating to a thing as distinguished from a person. real estate has become a major area of business. Thus the law broadly distinguishes between real property (land and anything affixed to it) and personal property (everything else e. • Reversion: The right to posses the free interest in real estate after the expiration of a life estate. estate for years or leasehold. in technical terms. while civil law jurisdiction refers instead to immovable property. Participants of Real Estate Market: The main participants in the real estate markets are- . Dependent Variables Customer awareness. percentage and graphs were used. clothing. money).International Research Journal of Finance and Economics . The collected in the aforesaid manner have been tabulated in condensed form to draw the meaningful results. Real estate is often considered synonymous with real property (also sometimes called reality). • Estate for years: Similar to life estate but term are a specified number of years. Rights of any single party may be limited in various ways depending on the jurisdiction and type of concurrency. • Concurrent or co-tenancy: The ownership of an interest in real property by more than one party. Some kind of real estate businesses include• Appraisal – Professional valuation services • Brokerage – Assisting buyers and sellers in transactions • Development – Improving land for use by adding or replacing buildings • Property Management – Managing a property for its owner(s) • Real Estate Marketing – Managing the sale side of the property business • Relocation Services – Relocating people or business to difficult country Types of Ownership Interests: Real property (immovable property) can refer to the real estate itself or to various types of ownership interests in real estate. in contrast with personal property (also called personality). To analyze the data tables. material used and advertising. Primary data is not used due to the reliability of the data. furniture. features of flat. The term real estate and real property are used primarily in common law. • Leasehold: The right to posses and use real estate pursuant to the terms of a use. In law. presences and their perception about property.g. real estate refers to the land and fixtures themselves and real property are used primarily in over real estate. The factors in the present paper are the Macro Economic factors for which the secondary data is more suitable and reliable. Independent Variables Prices.

while the developers and renovators constitute the supply side. India is the 4th largest economy in the world.Issue 24 (2009) Owner/User: These people are both owners and tenants. This could lead to a space requirement of 20-25 million sq. In most real estate markets. The real estate market in India has seen remarkable changes in the past few years. Facilitators: This includes banks. Geographical area 5. and has the 2nd highest GDP among the developing countries based on purchasing power parity. The owner/user.244 International Research Journal of Finance and Economics . IT and IT enable services sector in India is still in its growing stage due to increasing demand for business processing units in India and is estimated to grow by 107% to $583 million in revenue. In order to apply the simple demand and supply analysis to real estate markets a number of modifications need to be made to standard microeconomic assumptions and procedures. lawyers and others that facilitate the purchase and sale of real estate. the unique features of the real estate market must be accommodated. The following factors influence the price and cost of the real estate: 1. Owner: These people are pure investors. especially BPOs. rental income. Developers: These people prepare raw land for building which results in new product or the market. agricultural produce. These include: • Durability • Heterogeneous • High transaction costs • Long time delays • Both an investment good and consumption good • Immobility PART-1: Fundamental factors determining the value of real estate These factors includes Demand Demand refers to people’s willingness and ability to buy or rent a given property. The property rights 3. The rapid expansions of information technology. They purchase houses or commercial property as an investment and also to live in or utilize as a business. Property values follow an upward path when employment is increasing. Real estate can divided into three categories: These are • Commercial • Residential • Agricultural We can invest into all the given areas and can make return by capital appreciation. owner and renter comprise the demand side of the market. spurt in the middle class income and 8% growth in GDP are the potential key factors for the growth. The physical characteristics of the property 2. Renter: These people are pure consumers. In part demand stems from a market area’s base. lease and commercial use. real estate grocers. Renovators: These people supply refurbished buildings to the market. . The time horizon of holding the property 4. the source of buying power comes from jobs. The development rate Features of Real Estate Markets: In particular. They do not consume but rent out or lease the property to someone else.

As soon as something good or bad occurs. the Total value of real estate created by the IT and ITES sector in the next three years will be Rs. and Mumbai etc. In residential segment. the prices of the affected company’s stock adjust to reflect its current potential for earnings or losses. For those considering regular rental returns rather than capital appreciation. continued tax exemptions on such prompts people to buy property. for example. The demand for more capital appreciation in the wake of rising prices coupled with home loan rate hike has dampened the buying spirit. shops and showrooms are an integral part of the commercial rentals in India. Rental values in cities like Delhi and outskirts are witnessing an increase of 20-25%. The Property In real estate the property itself is also a key ingredient. Site characteristics 4. In some markets. according to a Merrill Lynch report. Supply Analysis Supply analysis means sizing up the competition. Though the interest rates on home loans. It will facilitate low risk and less worry on maintenance. information flows so quickly among buyers and sellers that it is virtually impossible for an investor to outperform the average systematically. The price that people will pay is governed by their needs and the relative prices of the properties available to meet those needs. An integral part of value analysis requires identifying sources of potential competition and then inventorying them by price and features. Improvements 5. Buying good space in highquality development and leasing it to a good brand is a wise investment decision. To try to develop a property’s competitive edge. mall space. Property management The Property Transfer Process In efficient markets. Location 3. Restrictions on use 2. low priced single family houses might compete with condominium units. Real estate markets are no as efficient as stock markets. Real estate agents are devoting themselves to negotiations for rented homes than ever. Usually.International Research Journal of Finance and Economics . those with the ability to buy a flat among the middle-class are thinking twice. Even PG hostels and working women’s hostels. where the corporate sectors rent independent houses for their senior executives. Taking this factor into consideration. commercial lease agreements specify a 15% escalation in the real estate rental in every three years which is a good enough yield. 45 lakhs from Rs.Issue 24 (2009) 245 ft. are considered safe and can be availed of on an individual or sharing basis mean big business. manufactured homes and even with rental apartments. an investor should consider five things: 1. This has in ways propelled demand for rental property in India. A paying guest or PG accommodation in India is a convenient arrangement. per annum.132000. mall space . Commercial rentals including corporate office space. the capital value or cost of flats has almost doubled in cities like Gurgaon where prices went up to Rs. Rental Trends in India Recent trends of rental properties in India are conspicuous by the immense potential that is being realized today. Increased demand for independent houses or paying guests occurs mainly in the metros like Delhi. The real estate rental trends in commercial sector are momentous as the key tendency among the investors is to rent a commercial space instead of buying. Nobody wants to pay more for a property than the price they can pay for competing property. 15 lakhs a couple of years back. BPO spaces. Gurgaon. An analysis of supply should not limit potential competitors to geographically and physically similar properties.

4% as on January 20. restrictive norms were imposed on foreign investments with their presence permitted only in the integrated townships.355 crore the year before. Figure 1: FDI in Indian Real Estate 30% 25% 20% 15% 26. The supply increased enormously and the demand remained steady.Issue 24 (2009) has the distinction to be an excellent option. as prices had gone beyond the realistic levels. hotels. recreational facilities.5% 16. The total outstanding loans to real estate rose by 84. In real estate.0% 10.246 International Research Journal of Finance and Economics . Recently the Cabinet Committee on Economic affairs has decided to permit 100% FDI in forms of housing.5% Real Estate Exposure of Banks Commercial banks exposure to the real estate sector almost doubled in the first 10 months of 2005-06 over the March 31. 2006. commercial premises. 17. PART-2: Causes for Present Real Estate Boom Foreign Funds The Government has allowed FDI in the real estate sector with certain caveats. InfoTech parks and special economic zones.600 crore against Rs.500 crore. In the meantime. 3. educational institutions. Over a half a dozen domestic realty funds have been setup so far with a corpus of over Rs. .6% 10% 5% 0% 2003-04 2004-05 2005-06 2006-07 4. resorts. 26. hospitals and city and regional level infrastructure in order to attract higher investments. They invest in urban infrastructure like hotels. 2005 level. large scale residential complexes in new townships. It gives returns higher than that received with office space and much higher than the rental returns from residential space. shopping malls. Earlier. making home loans easily available to everyone. banks advances for 2005 were Rs. the housing finance industry started to expand rapidly. according to RBI’s report on macroeconomic and economic developments in 2005-06 released.

the crush in the meantime is on the existing space.000 crore every over five years on township projects.000 acres.023 acres (86. 175 and Rs. Investment by IDFC The Infrastructure Development Finance Company (IDFC) plans to invest Rs. 225 per sq. only three were in possession of a total of 30. ft. 250 per sq.Issue 24 (2009) Figure 2: Loan Disbursement Loans (Rs.208 hectares. The developers will be free to choose the 10 consecutive years for the purpose of availing themselves of the tax holiday. Gurgaon. Out of the 23 multi product SEZ projects for which the data is available. ft. head. 2006 to March 31. Of this. Ansalplaza Mall Management Company. As many as 125 projects for over 2. Of this Adani Exports Limited did not have the 75. 2009. The companies are not having the required land for their projects making the prices of land very high.290 acres or 70% of the projected land size these SEZs.13.510 acres of the total land they sought.000 acres available. Shops on the first and second floors of the mall. Nodia and Faridabad. retail and transport sectors. Abhijit Das. in crore) 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 19961997 19971998 19981999 19992000 20002001 20012002 20022003 247 39750 26500 7500 4500 5700 9821 12626 Shortage of Land for Special Economic Zone In the great rush to developing special economic zones a schism have emerged between the companies that posses land for the projects and those that don’t.1. which is more than half the area of the national capital) were considered at a meeting to a massive 1. two months ago are now being out at a minimum of Rs.250 acres of land a month ago. For instance Mahindra Realty does not have the 2. ft.500 acres land for it s proposed SEZ as yet.48. hotels. Another seven projects had managed to get a portion of the 27. the industrial park developers will be eligible for 100% tax deduction which is to be provided for 10 consecutive assessment years out of 15 years after the commencement of operations of such units. . there are currently 18 malls in New Delhi. Commercial Boom According to an expert to a real estate consultancy. confirms the rental increase. The remaining thirteen projects did not have land totaling 1. with approximately built up space of 3 million sq.000 acres if land available at that stage. According to the Industrial Park Scheme 2008 notified by the Central Board of Direct Taxed (CBDT). 10-Year Tax Holiday The finance Ministry has announced a 10-year tax holiday for developers of Industrial parks set up from April 1.35. Reliance Industries accounted for 25.International Research Journal of Finance and Economics . he says which were being leased at rates between Rs. InfoTech parks. While 66 new mall projects have been announced.

248 International Research Journal of Finance and Economics . so it indicates that how the spending on the construction sector helps the real estate prices to increase. Thus there is a positive correlation between per capita income and real estate prices.5% to7.) 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 2002-03 2003-04 2004-05 3529240 3121414 2463324 2760224 2005-06 GDP. the indicator of the national growth. As shown by the fig. GDP at Market Price Figure 4: GDP GDP at Market Price (in Crore Rs. .) 23240 25000 20000 15000 10000 5000 0 2002-03 2003-04 2004-05 2005-06 19592 21543 25000 As depicted by fig. 2 per capita income is increasing in India.996 is found between PCI and real estate prices. from the past 2-3 years is increasing by 6. Correlation . 3 the GDP has increased from the 2463324 crore to 3529240 crore from 2002-03 to 2005-06. which has increased the purchasing power of the people. Every rupee spend on the construction add to nearly 60% of GDP.5%. Due to this over the last year (2006-07) houses prices have raised by 10-90% and commercial property prices by 10-30% in different area of India. Mainly there are two causes for the same: Per Capita Income Figure 3: Per Capita Income Income (in Rs.Issue 24 (2009) Price Variations in India There are unbelievable variations in the prices of real estate sector in the past.

) Mar-08 27000 26500 18000 6100 6850 Shanti Niketan Vasant Vihar Friends Colony Gurgaon Nodia Mar-04 11500 11000 6000 2000 2000 Mar-05 15000 14500 8000 2500 2800 Mar-06 18000 17000 10000 3700 3700 Mar-07 22500 21000 13500 4850 4900 Figure 5c: Chennai Price variations in Chennai (in Rs.International Research Journal of Finance and Economics .) Mar-08 42000 46000 32500 26500 5500 Figure 5b: Delhi/NCR Price variations in Mumbai (in Rs. Per Sq. Adyar Anna Nagar Vadapalani Mar-04 7750 6200 3000 2000 2300 1900 Mar-05 8500 7500 4500 3000 2800 2000 Mar-06 10000 8500 6000 4000 3500 2250 Mar-07 12500 11000 8500 5800 6500 3800 Figure 5d: Bangalore Price variations in Banglore (in Rs. Ft.) Mar-08 12500 15500 13500 9200 8500 White Field Richmond Town Palace Orchards Indira Nagar Kanamangala Mar-04 1000 5000 5300 3200 3100 Mar-05 2000 6000 6000 3700 3500 Mar-06 5000 7200 7500 4200 4000 Mar-07 8900 11000 11000 6500 6500 Figure 5e: Hyderabad Price variations in Hyderabad (in Rs.) Mar-07 Mar-08 4800 6500 4600 7500 3200 4800 2800 4200 3100 4500 Banjara Hills Jublee Hills Himayatnagar West & East Marredpally Secunderabad Mar-04 2000 2000 1500 1500 1500 Mar-05 2500 2500 1700 1700 1700 Mar-06 3000 3000 2000 2000 2000 . Ft. Per Sq.Issue 24 (2009) Price Variations in Different cities Figure 5a: Mumbai Cuffe Parade Malabar Hill Worli Bandra (W) Navi Mumbai Mar-04 11500 15000 8500 8500 1800 Mar-05 18000 22000 12000 10000 2300 Mar-06 25000 28000 18000 13500 2800 Mar-07 35000 38000 26000 21500 3500 249 Price variations in Mumbai (in Rs. Per Sq. Per Sq. Ft.) Mar-08 16000 14800 11200 7500 8500 5200 Baoat Club Road Poes Garden Mylapore Tnagar. Ft. Per Sq. Ft.

PART-3: Constraints in the Real Estate Investment The various constraints are as underUrban Land Ceiling Regulation Act (ULCRA) The central government has replaced this archaic law in 1999-2000. unlike the developed countries.) Mar-08 7800 8500 8000 4200 5250 Mar-04 2850 3000 2975 1100 1875 Mar-05 3000 3200 3100 1200 1950 Mar-06 3400 3575 3575 1550 2075 Mar-07 5400 6200 6250 2800 3600 Figure 5g: Pune Price variations in Pune (in Rs. This law has been failed and this is the right time to act on it and to release more land into the market. UP. which accounts for about 50% of the price of real estate property in India. but the state government has not followed the lead. MP. Rajasthan.Issue 24 (2009) Price variations in Kolkata (in Rs. In some areas the prices are increased by 90-100%.250 Figure 5f: Kolkata Allipur Allygunj London Street Rajarhat Salt Lake International Research Journal of Finance and Economics . Ft. Some states like Punjab. Ft. Per Sq. In Gurgaon and Noida prices has jumped by as much as 200%. Gujrat and Orissa are yet to act on it. Per Sq. where it is much less. Distribution of cost of Housing in India and USA: Figure 6: Housing Cost in India & US 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Land Costs Material Costs Labor Costs Prof it 28%30% 24% 18% India US 3% 5% 49% 37% . The cheapest DLF apartment in Gurgaon costs Rs.) Mar-08 7250 7000 6200 5800 7500 Karegaon Park Aungh Banger Wakad Kalyani Nagar Mar-04 3000 2000 1600 1300 1800 Mar-05 3500 2500 2000 1800 2500 Mar-06 4000 3200 2500 2000 3500 Mar-07 5800 5500 4500 3500 5400 It is clear from the above tables that in real estate prices are touching heights. 1 crore. This will definitely lower the price of land.

Building Codes. So the buying power is reducing. This is due to poor record keeping and outdated complaint processes. Goa. Foreclosure Laws Though the level of foreclosure for the housing finance companies are relatively low at around 1. All updated records must be computerized to increase transparency in land ownership. The laws for non-payment of Equated Monthly Installments (EMIs) and consequent foreclosure and repossession of the property law must be revised so that the financing companies have the final rights on the property. these must be revised and made up-to-date to suit the current context.International Research Journal of Finance and Economics . And special fast track courts must be set up to clear all legal land disputes in a short period of time. Some states like Maharashtra. Stamp Duty & Registration The cost of transferring land titles must be reduced from rates of 10% stamp duties to reasonable levels of 3 to 5%. Development and Planning In India development and planning concerned with real estate sector is not up to the mark. The rental laws must be revised to protect the owner and his/her property from the tenant. There was a situation of boom in this sector.Issue 24 (2009) 251 Clear Title 90% of the lands in India do not have clear title. This will encourage sellers to pay stamp duties. thus increasing the revenue for the country. But in 2008 the things are changing due to the high rate of inflation in the Indian economy. The tax laws must be revised to make renting of properties a financially viable option. There is uncertainty in the market as share market is showing depression and the RBI is also increasing the Bank rate leading to the increase in the interest rates. instead of trying to cheat the government. thereby creating a scarcity of land. Bengal and Karnataka have already made amendments to the rent act. however they are neither followed by the developers nor implemented by the authorities. This must be done without political compulsions. The major reasons for this downfall are inflation and the low rate of GDP. The city or state authorities must use professionals to plan and execute all development plans for cities and towns.5 to 2%. with future development in mind. green areas and other infrastructure systems to fall into place as the development plans unfold. The high duties have also encouraged unaccounted money being used in most real estate transactions in India. The home loans were easily available and RBI was following very liberal policies regarding the interest rates. similar to prevailing rates in developed countries. The ownership is unclear. Inflation rate is touching the heights as shown by the figure given below: . Present Scenario in India Up to the end of 2007 real estate sector in India was growing at a very high rate. This will allow proper zoning within cities and towns. The registration procedure should also be made transparent and simple so that corruption can be minimized. Rental Laws Obsolete tenancy and rental control laws keep a large part of the urban properties off the market. which is collateral for the housing loan. Standards & Permissions There are several building guidelines and standards in various cities and states.

1 0% Findings Findings of the paper are as under• As the GDP increases the real estate prices also increases because there is a high degree of positive correlation between the real estate prices and GDP. which have kept the problems dormant for so long. the housing sector would grow at 14% a year and create over new3.252 Inflation rate in India International Research Journal of Finance and Economics . .1% with the complete reforms by 2010. and the resulting GDP growth of 10.70% Infrastructure. Barriers in GDP Growth The present contribution of the housing construction industry in India is small when compared to developing and developed countries.43% Inflation rate is increasing continuously in India making the market unstable.2 million jobs over the next 10 years. • Real estate prices also increases with increase in the per capita income as there is high degree of positive correlation between these two also.24% 11.30% Land M kt B arriers. 08 May 24.30% P rivatizatio n. Figure 8 shows the various barriers.50% P ro duct M kt B arriers. B arriers.05% 11.82% 8. but the choices are difficult and few. 08 Inflation rate 3% 6. but to act strongly and immediately. the solutions are obvious and clear.20% 0. The advantages of implementing these changes will overcome all the negative and political issues. If the above issues are addressed and the economy was to grow at 10% a year. as compared to 3 to 6% in other developing countries. Figure 8: Barriers in GDP Status Quo Gro wth. 08 April 4. 08 June 14. 2. 08 June 7. Lack o f Labo r M kt 0. 1 . 08 May 10. 0. keeping the GDP growth in India at 5. This sector contributes only 1% of the GDP in India. 5.Issue 24 (2009) Figure 7: Inflation rate Date Feb 5.5% in 2000. This will provide the impetus to get Indian economy back on the track for a double digit growth.61% 7. 08 Mar 22. 08 April 26. India does not have option.68% 7% 7. The problems are numerous.

So govt. which is now in India varies from 13-14%. availability of easy home finance and rising purchasing power has driven the growth. so govt. should take measures to protect the lower income group. fraud cases are also increasing day by day like in Delhi deconstruction of buildings. sport stadiums and other infrastructure to have successful games need to be expedited. • Privatization of Airports and ports needs to be speed up. • There is a lack of proper data and management of the real estate sector so govt. • The agriculture land covered into the commercial and residential purpose. Thus careful measures and laws should be enacted to deal with these types of situations. of space across the major cities by 2010.Issue 24 (2009) • • • • • • • • 253 The infrastructure of India is also growing day by day so it adds to the better facility to different sectors which affect the real estate prices. 10-15% in commercial sector and agriculture sector. Thus more and more encouragement should be given to foreign investors. This is another great opportunity for foreign developers and investors to step in India. The FDI into the country affects the real estate FDI and real estate having a positive correlation leads to the boom in this sector. • Commonwealth is scheduled for 2010. Suggestions The following recommendations are made by this paper• Due to high prices the lower income group is not able to purchase the land. • Due to lot of investment avenues in real estate in India. But the population is also increasing day by day. Hotels. ft. . should steps for the same. In residential segment. In 2008 the growth of real estate sector is going down due to high inflation and hike in home loan rates by the banks following the increase in bank rate and SLR by the RBI. Increase in FDI from 2006 to march 2007 is 10%. Earlier it was 16% and now in 2008 it is 25%. The growth in the real estate sector is between 25-30% in a residential sector. • The investors should analyze the type of land in which they are going to invest and the potential returns from it. life style residential products to cater to the growing bunch of high net worth individuals. • Stamp duty is extremely high and must be rationalized and brought down to 2-3% as per global practice. Housing sector constitute 80% of real estate in terms of value and 20% by commercial sector. The outsourcing and IT/ITES industry have contributed to the demand for quality office-space. The interest rate also affects the real estate prices because it affects the lending and borrowing by the investors.International Research Journal of Finance and Economics . Builders are launching high-end. The estimated demand from IT/ITES sector alone is expected to be 150mm sq. should take the corrective steps in this regard so that the proper estimation and management of the real estate can be made possible.

Page 163 to 179. Page 91 to 116. per capital income. Michael (1999). 14. No. The introduction of REIT s in 2007. 11. . Stephen. Journal of Real Estate Literature. Vol. Legal issues should also be kept in mind while choosing a property. Vol. ````The role of Speculation in Real Estate Cycles”. Although interest in new projects is most likely to come primarily from institutional investors. O. No. will give international investors in particular a familiar investment vehicle. “The Development of German Open-Ended Estate Funds”. the rising middle class is likely to seek new instruments aside from direct property investments in the medium term. Malpezzi. in the end we can say that the investment in Real Estate in India is a very good investment opportunity. References [1] [2] [3] [4] [5] Seiler. The most important factor in the case of Real Estate is location which affects the value and returns from the Real Estate. “The Effects of Environmental Contamination on Real Estate”. Vol. J. Page 279 to 324. Journal of Real Estate Literature. Page 141 to 164. No. Benjamin. John (2003). Vol. Journal of Real Estate Literature. 09. Thomas (2001). 13. 07. Vol. Journal of Real Estate Literature. But one should be very careful while taking decision in this direction due to rising inflation and interest rates. India needs a stronger capital market base for property financing. Christian.254 International Research Journal of Finance and Economics . FDI. Private investors could also enter into indirect investment in real estate. Jackson. Focke. The debate on the potential introduction of REITs and real estate funds points in the right direction. “The Environment and Performance of Real Estate”. Page 39 to 56. No. So. Journal of Real Estate Literature. “Diversification Issues in Real Estate Investment”.Issue 24 (2009) Conclusion After studying all the factors of the real estate it can be concluded that the Real Estate is a very wide concept and it is highly affected by the macro-economic factors like GDP. D. No. Interest rates and employment in the nation.

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