Fluctaution in Prices of Retail Industry in India

Managerial Economics Project Report

On

“The Fluctuations in Real Estate prices”

By

Section B

Group 7

Abhijeet Singh Rawat

– PGP15061

Harish Maddirala

– PGP15081

Nakul Yadav

– PGP15092

Pratika Saini

– PGP15100

Raghunath. N.V

– PGP15091

Abstract

This paper gives the insight on the fluctuation of prices in real estate. We have researched

mainly on the housing sector which has seen an enormous growth in the last decade in India

taking Dwarka (New Delhi) as our sample. Post the economic slowdown in 2008 we have seen

significant investments in real estate from the major players. We have used the basic principles

of Microeconomics to analyse the situation and tried to understand the current and future trends

of the segment. We have also taken into account the effect of government policies and

economic environment on the segment. We will then see why the construction of new projects

has slowed down and continues in the downward trend. We will then discuss the possible future

demand and growth rate of the segment.

Introduction

India is a growing economy with an exponentially rising population. Over the next five years,

there is an increasing potential demand of houses. The growth in the demand will be majorly

accounted by the demand in urban areas as compared to rural areas. The shift from joint

families to nuclear families will also be a driver of growth. With so much potential in the

segment why are the prices in the decline at the present. Is this a bubble that is deflating or will

the situation will correct itself after sometime. We have seen this bubble bursting across the

world like Japan 1990 which adversely affected their economy. Similarly the global housing

bubble of the 2007 led by the US seriously affected the global economy. Is this applicable for

India with a different environment?

Methods

In this report, we will

Analyse the demand of the retail sector and compare with the stock available....