Real estate recovery in next three months: Assocham
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Real estate recovery in next three months: Assocham

Friday, 29 May 2009, 02:59 Hrs   |    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
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Reader's comments(4)
1: Really today we are in recession because of real estate business mens with highly inflated value of flats/plots is one reason.

Today even people are afraid to buy the flats/plot because what is going to happen. A common man earning 25K per month wants to buy a flat for 15Lakh is it possible if he is willing to buy also what is the guarantee for his job? today even leading the family is finding diffcult.

All these are our useless governament is doing there is no control on prices on human requirements, really what is happening?
Posted by:Ramesh - 01 Jun, 2009
2: I do not agree that in 3 months time the real estate will be back on tracks. This is marketing gimmicks and far away from realities.
Posted by:anupam gupta - 29 May, 2009
3: What kind of survey is this? These people have vested interest and obviously they will say market will improve or else their head will roll. Now they talk about Affordable housing? what dose that mean? The properties which they built till now was inflated? They where cheating the public with properties which was priced way above. Unless you see affordable housing inside the cities (not outskirts as it is now) we will not see a revival.
Posted by:View - 29 May, 2009
affordable means small house without super luxurious features which a common man can afford earlier it was 2000-3000 sft 4-5 BHK flat golf course etc within the township, now they are 1200-1300 sft 3 BHK or 3+1 BHK flats and demand in this sector is rising you can observe independent floors bt BPTP- sold out within few days-Jaypee aman sector 151-sold out within a day, so its not a marketing gimmik its what happening in the market earlier they were targeting higher segment now they are targeting middle class who can afford house with the help of home loan and the was like that super inflated salaries and profit was the key so the prices of housing !
I am working with ICICI properties services and the demand for affordable house is rising which is the fact these days
ashish gupta Replied to: View - 29 May, 2009