Drivers of Real Estate Market in the Post Demonetization Scenario in India

Abstract

The real estate sector in India has grown with the increased need for new real estate units due to the reasons of growing population, increasing number of nuclear families and urbanization. The real estate sector in the last five years have been affected due to demonetizations and GST being introduced in India. Thereafter, the real estate sector has stabilized and is growing at a steady rate due to the several institutional reforms. The investments in real estate sectors have come from home buyers and also from institutional investors. The study aims to find out the effective drivers (factors) of real estate market in India post demonetization and GST scenario.  The study incorporates both primary and secondary source of date but the mostly used primary data for analysis. Graphical data analysis and factor analysis with ‘KMO and Bartlett’s Test’, ‘Communalities’, ‘Total variance explained’, ‘Scree Plot’, ‘Factor Matrix’, ‘Rotated Factor Matrix’ and ‘Factor Transformation Matrix’ are used for the study. The study infers that some of the selected factors are more effective on real estate demand than the rest other factors incorporated here.