Wednesday, July 24, 2013

Impact Of Globalisation On Real Estate In India

The Indian economy has seen a great transformation  in the last decade. Along with this, all the industrial sectors are facing the side-effects of this change. It will not be an exaggeration to call India as the fastest growing economy worldwide. It has shown a flat 8% GDP growth for the last few years. It has shown unchanged growth in various sectors like retail, IT, infrastructure and real estate. Now the real estate industry is flourishing with a rapid pace along with the other industries. It is mainly because maximum number of sectors are directly or indirectly linked to the real estate.

Expanding market is the rule,  people are following in the real estate market during the era of globalization. This process was first endorsed by the United Nations in the year 1997 during a conference on trade and development. This is also declared as a very fast track method of real estate development. The maximum number of real estate companies focus on guarding the property against the impact of globalization, but that is not very feasible in the competitive market. During this discussion, J. Timothy Lake, the chairman of IRDC says that the real estate firms do not keep a separate strategy for the international market.

This way of devastating real estate market due to the impact of globalization is known as “corporate disaggregation.” Maximum number of real estate companies in India are trying to fill up this gap through an efficient way. Due to the effect of globalization, many firms are seen unknowingly fighting with one another over a deal.

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