The Recession on Real Estate-Causes And Its Effects In Focus On For Pune Real Estate Sector

Abstract

The real estate sector is one of the most dynamic and globally recognized sectors
today, owing to a number of factors like population spurt and increased purchasing power of consumers. India is one of the biggest real estate markets. It comprises of four subsectors namely housing, retail, hospitality and commercial. India’s real estate market has witnessed a decline in property prices. India is the world’s largest democracy in terms of population, with India’s Central Statistical Organisation (CSO) estimating a population of 125 crore people as at March 31, 2015. The study also focuses on Pune Real Estate Sector, to find the effects it had faced during economic downturn. Real estate cycles do tend to be fairly long in duration and occur in any asset market which tends to have several defining characteristics. So, clearly there is a strong connection between the development in real estate and the financial markets. The thesis concludes that in line with the natural laws of economics, that an economic upturn is followed by an economic downturn, and that the length of the coming downturn often follows the length of the upturn proportionally.