To Identify The Causes And Effects Of Recession On Construction Sector For Pune Region

Abstract

The paper reveals the real estate scenario in India before economic recessionary period and after that period. The main indicators and causes of various past recessions were thoroughly analyzed and was observed that stock market crash and oil crises were the major indicators of the major past recessions. Having enjoyed an extended period of economic prosperity, many industry executives have been closely monitoring the bell-weather indicators in order to better understand what a deep recession will mean to their companies. The importance of the study is to addressed the next change in business cycle by finding the root causes of recession. By the help of this study we get an early indicative warning to the industry and financial institutions of an impending slowdown and recession. The study also focuses on Pune Real Estate Sector, find the effects it had faced during economic downturn. Real estate cycles do tend to be fairly long in duration and occur in any asset market which tends to have several defining characteristics. So, clearly there is a strong connection between the development in real estate and the financial markets. The thesis concludes that in line with the natural laws of economics, that an economic upturn is followed by an economic downturn, and that the length of the coming downturn often follows the length of the upturn proportionally. This points out that a long downturn could be on its way. Cleary there is a strong connection between the development in real estate and the financial markets.