Indian real estate sector will go in to recovery mode by the end of this year—far ahead of previously projected timelines. This recovery will be fuelled by a confluence of different factors influencing the economy in general and the real estate sector in particular.
“Global capital flows are looking for existing and futuristic growth indicators and patterns and India has displayed both to a measurable degree,” said Jones Lang LaSalle Meghraj (JLLM) chairman and country head Anuj Puri, at the CII Real Seminar.
At the seminar, JLLM also launched a timely white paper on ‘Capital flows outlook for Indian realestate in the near future’. According to Puri, “These factors, coupled with an already discernible return of positive sentiments in the real estate business, will result in enhanced interest by foreign real estate investors. This will first become evident during calendar year 2010-11 and protract sustainably over the medium-to-long-term.”
On turnaround in the downturn, an insight into the current real estate scenario, Arun Nanda, deputy chairman, CII Western Region and executive director, Mahindra & Mahindra Ltd recommended that revival of Indian real sector lies in pro-viding affordable housing by cross subsidisation and conscious effort on part of the developers to inculcate corporate social obligation.
Calling upon the stake holders of the lndian realestate sector to look back and analyse the reasons of downturn in the sector, Nandaem-phasised with the reduction in interest rates from 14% to 8% .the sector was now show-ing signs of revival.
Speaking on the issue of urbanisation he said, “Based on the past trends, by the year, 2030, 40% of our population will live in urban areas. It is thus essential that challenges of infrastructre and urbanisation be met.” He also laid emphasis on development of satellite centres as a means to tackle the issue of growing urbanisation and urged the need to ensure balanced urbanisation.
According to Godrej Group chairman Adi Godrej , “Realestate is the single biggest business in the country creating high employment. This business needs to be strongly encouraged for the growth of our economy.” Viewing affordable housing as garnering good opportunities in the sector, he said that land cost and mortgage rates need to continue to remain at reasonable levels to have developers invest in low cost housing.
Source: The Financial Express