Just before the housing bubble in the US, the banks and financing institutions in India took a generous approach in giving home loans and other finances needed for property development. All that has changed now. Housing loans are not as easy to get sanctioned in modern times. The Easy Monthly Installment (EMI) was less than 700 rupees per month for an amount of one lakh rupees. Due to the changed policies of the financing institutions, this amount has gone up to more than 1300 rupees. Literally speaking there is nearly a 50 percent increase in the repayment burden.
Developing
real estate in Cochin is not so easy as in earlier times. The proximity of Cochin to the major cargo and transportation routes was one reason for the availability of building materials at cheaper rates. In spite of the reduction in the price of petroleum products, the ground situation has not changed much.
The price of cement, which is mainly imported through the Cochin port, has not come down significantly. When there is a building boom, cement prices always move up significantly. However, the building construction industry is now facing a recession. Then, at this point of time, the cost of building materials should have come down. However, the interesting fact is that they are even now hovering at a particular level.
Just before the commencement of the Beijing Olympic games, the cost of steel went up to phenomenal levels. Economists pointed out that it is due to the demand for this metal from the fastest growing economy in Asia. Nevertheless, even in the year 2009, the price of steel has not come down significantly in the international and the domestic market. When the Non-Resident Indians (NRIs) started losing confidence in the American market, investments in the Indian market is likely to see an upsurge in the coming months. Also the investments into the Information Technology and other related sectors are likely to fuel more growth.
