Real estate recovery in next three months: Assocham
Friday, 29 May 2009, 15:29 IST   |    4 Comments
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New Delhi: India's realtors believe the sector will see signs of recovery in the next three months, according to the Associated Chambers of Commerce and Industry of India (Assocham). A survey report by the industry lobby said 88 percent of chief executives of real estate firms see a quick revival within the next three months as developers shift towards affordable housing and property prices undergo significant correction. The Assocham Business Barometer report is based on a survey of 25 real estate firms conducted between May 15 and May 25. The survey report said a whopping 92 percent of chief executives considered affordable housing to kindle demand in the real estate sector, with about 84 percent saying this segment had been least impacted by falling demand. It said while the luxury housing segment witnessed a demand contraction of over 50 percent, special economic zones (SEZs) by about 40-50 percent, retail space between 30-40 percent and commercial space by 20-30 percent, affordable housing was the most resilient segment seeing a contraction of 10 percent or less. The chief executives called for sought single-window clearances for all schemes under affordable housing, as is done with SEZ proposals, to bridge the shortfall of about 2.6 crore dwelling units at the earliest. About 76 percent of the respondents said the stimulus given to the sector through fiscal and monetary measures was inadequate. Of all policy measures, 64 percent of respondents were of the view that the central bank's move to allow banks to restructure loans to developers has been the most successful in improving liquidity for the real estate sector. Additionally, 60 percent said a resurgent stock market would be the most prominent source of finance for the sector, while 28 percent thought bank credit was the most viable option. Hefty funds raised through the qualified institutional placement route in the stock market (exceeding 8,000 crore) along with debt restructuring would allow the developers to address their liquidity concerns. Mumbai has been ranked as the most saturated in terms of real estate assets followed by Delhi, Bangalore, Chennai, Kolkata and Hyderabad.
Source: IANS