Analysis of Residential Real Estate Market Economy

Introduction: - Real estate sector is one of the dominating segments of the economic growth of the nation. The term real estate covers a vast area like, residential real estate, commercial space, retail space, special economic zones (SEZ), free hold land etc. The residential real estate having the highest contribution in the real estate sector of India which accounts around 70% of the total real estate segment. Aim of the Study: - This study primarily tried to reveal linkages and influence of key economic indicators of the nation on Real estate Prices. Methodology: - This research is descriptive exploratory in nature because this study aims to establish linkages and influence of economic indicators on real estate prices. Further study employed correlation and covariance analysis to reveal the linkages and regression analysis was performed to understand the influence of economic variables on the real estate prices in India. Data Collection: - Entire research conducted based on the secondary data available from the authority websites. Seven-year data collected to perform the study starting from 2013 to 2019. The data was collected for the key economic indicators including exchange rate, FDI in Real estate, GDP, Interest rate, Inflation etc. and tested it against the Housing Price Indices released by the National Housing Bank of India. Conclusion: - The result indicates that, all economic variables bearing the linkages with the housing price indices movement except FDI in real estate segment. Further it also revealed that, Exchange rate, GDP, Inflation, and Interest Rate on Housing Loan having the significant impact in the movement of the housing price indices.