An overcautious year ahead for real estate sector-II
The office market is likely to observe steady demand, especially in prime locations in leading cities like NCR, Mumbai and Bengaluru.
The office market is likely to observe steady demand, especially in prime locations in leading cities like NCR, Mumbai and Bengaluru.
Replicating global trends, the Indian economy is looking towards an impending slowdown in growth due to decline in consumption expenditure, repeated hikes in interest rates and consistently high inflation.
Fitch Ratings’ outlook for 2012 for the Indian real estate sector is negative due to weak overall demand and higher construction costs, which are likely to continue to squeeze margins.
Seeking to address the concern of real estate developers over delay in getting approval of the projects, government today announced the setting up of an expert committee to suggest measures for a speedy clearance system.
Despite strong growth potential for real estate in Tamil Nadu, the price per square foot is set to rise in the next two three months as the industry is reeling under a crisis.
The country’s competition regulator is planning to initiate an investigation next week to find whether the practices for which it fined DLF Rs.630 crore on Tuesday are the norm at other real estate companies too.
The real estate sector has posed “some concerns” given the large and growing share of these loans in the credit portfolio of banks.
It has always been axiomatic that when financial institutions raise their lending rates, there are bound to be ripples on the highly cost-sensitive Indian real estate market.
Real estate traditionally has always had the perception of being a sector where ‘land & buildings’ was the language required and ‘people skills’ were of no great relevance. But, now, even big Real estate players are soon beginning to understand the importance of effective ‘client servicing’, enhanced ‘team productivity’ and professional ‘managerial skills’.
The housing and real estate sector in India witnessed foreign direct investment (FDI) of $2.8 billion in the fiscal year (April-March) 2009-10, according to Indian Department of Industrial Policy and Promotion. The statistics made available to the media at the India Home property exhibition, which concluded in Dubai on Sunday, revealed that total NRI FDI inflows through the period April-December 2009-10 stood at $320.05 million.