New Delhi: In the closed circles of large investors, we hear that that the rally of real estate as an asset started in 2003 when country's GDP growth was hovering at 8 per cent and inflation was at 5 per cent. We also hear that in 2013, the trend reversed as India's GDP growth hovered at around 5 per cent and inflation reached 10 per cent.
In such scenarios, informed investors believe that the price growth of physical assets like commodities and real estate slows down. With high inflation eating into the savings of the common man, available budgets do not encourage the taking of long-term investment calls. The middle income segment perceives that limited finances prohibit exposure to assets like gold and real estate.
