Impact of low GDP on real estate

Q: How is GDP and real estate interconnected ? Since GDP is 4.4 perc now which is low as 10 years before, I would like to ask should I buy the property now or not ?

Dharmesh Shukla, Bangalore

9th October 2013

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Replies (3)

Hello, you can follow this link for your requirement June quarter GDP growth dips to 4-year low of 4.4%

Akash Kanojia, Delhi

9th October 2013

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@Dharmesh, Harsha: As far as I know some of the reasons for the fall of GDP is firstly Reserve Bank of India’s high interest rate which has made lack in investments. Secondly agriculture growth is also low due to undesirable monsoon. Third reason is the depreciation of rupee against dollar. Fourth reason is manufacturing and mining has fell to 1.2 perc..

Himani,

9th October 2013

Comment

Hey guys real estate and GDP are interconnected and contribute to each others growth. Do you know that for every 1 rupee invested in housing, 78 paisa gets added to the GDP. After agriculture it is said that housing ranks second largest employment generator in India.

Gurmeet,

9th October 2013

Yes Gurmeet you are right. A good and affordable housing can increase employment and educational opportunities. So Housing can increase GDP and can be the solution to most of the problems that government faces. But Government is not supporting real estate. As builder face many problems while getting approvals. They delay many infrastructure project which impacts on real estate sector. Atleast can reduce the interest rate for home loans etc so that people can do some investments or buy property.

Harsha Mahipal , Bangalore

9th October 2013

India’s gross domestic product (GDP) growth is 4.4 per cent i.e low in the April-June quarter of 2013-14. GDP is not only connected with real estate but also agriculture, mining, rupee against dollar. Real estate, business services, electricity, water supply and gas have shown some growth but here also slight depth is seen.

Harsha Mahipal , Bangalore

9th October 2013

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Hey Dharmesh I would suggest you not to buy a property now..as Property tax,Home Loan charges, Registration fee has increased area wise. That's the reason most of the people have stopped buying property now.

Jackie,

9th October 2013