Gurgaon Market Sentiments in 2016
Slowdown persisted for most of the part in the year 2016 at the background of moderating demand from the investor community. A high inventory overhang was further detrimental to market sentiments and most of the major micro-markets depreciated as there was practically no new launch in the market.
Once known as an investor’s hot favorite market, where the community roughly comprises around 70% of the market share, Gurgaon witnessed a dip in investor involvement. The city which is a hub for the corporate sector has been attracting a large part of working for the millennial population from Tier-II cities. However, the industry also witnessed the market share getting equally split between investor and end-user by the end of the year. There had been a favorable chain of events that catalyzed the growth in the real estate sector.
Then the country witnessed the historic event of demonetization. Aligned with other major parts of India, Gurgaon further moved into a stage of doldrum, when the government banned the ₹500 and ₹1000 currency notes. This was a major jolt for the real estate industry, which was followed by a strong confusion in the market for the coming few weeks. The investors were in two minds regarding how safe would real estate investments be in the times to come.
However, the stage of confusion has passed now, and the market is coming to terms with the fact that primary real estate won’t be affected by the demonetization. The real estate sector is now out of the days of gloom and here we welcome the days of rejoicing for the sector. By the end of 2016, most of the investors in the market have de-regularized their existing cash component, thereby reversing the liquidity crunch that happened quite immediately after the demonetization chapter.
Also, Read Gurgaon Market General Overview
