Track2Realty Exclusive: A marginal rate cut/hike time again evokes reactions across the industries and the blame game continues where the Reserve Bank of India (RBI) defends its balancing act of controlling inflation and the industry captains slam its short term outlook of stop gap arrangement.
Track2Realty: Expressing disappointment over the RBI’s decision to cut repo rate by “just” 25 basis points, realtors’ apex body CREDAI said the central bank appears to missing opportunities time and again.
Ravi Sinha: I have a question here, and I will be very frank with Mr Tripathi. Any journalist who writes on real estate finds it very amusing that the sector has always tried to put the ball in the government’s court. Since you have been part of the government, how far will you agree to this?
Track2Realty Exclusive: Vidya Basarkod, President, Sales and Marketing, Jaypee Greens believes though the Indian economy has gone through turbulent phase of slowdown, demand for housing has kept the momentum for residential real estate. In an exclusive interview with Track2Realty she asserts though liquidity has been a concern for both the buyers as well as developers, there are more pressing issues hampering the growth of the sector, like delays in approvals, infrastructure bottlenecks and skilled manpower.
Track2Realty Exclusive: Come budget and the real estate in the last few years seems to have been repeating the rhetoric of industry status. As a result, year after year it has been a case of realty proposes and the Finance Minister disposes. However, the sector on the eve of 2013-14 makes a strategic shift to be more realistic with its causes and concerns.
Track2Realty-Agencies: Real estate industry and property consultants today hailed the RBI’s decision to cut key policy rates, saying that it is a positive step that would boost housing demand and encourage foreign investment in the sector.
Track2Realty Exclusive: The real estate clan in the NCR region has come a long way ahead particularly with the housing sector most likely to witness a notable recovery, by the second half of 2013. The rising prices and high interest rates of the RBI have caused a drastic slash in sales. Adverse market dynamics such as high debt, piled up inventory and depressed market conditions took the sector for a rather harsh toll.
Track2Realty Exclusive Yearly Analysis: India has led the list of top-performing housing markets globally with a 284 per cent real rise in prices since 2001, which is equivalent to an average annual rise of 14 per cent, according to the Lloyds TSB International Global Housing Market Review.
Track2Realty: India Ratings has revised its outlook for the Indian real estate sector to negative to stable for 2013, from negative in 2012. Demand remains subdued and EBITDA margins low, leading to weak credit metrics for companies in the sector. The agency however sees signs of improvement, in terms of stability of margins and the easing of liquidity pressures, with free cash flows turning positive since H2FY12.
Track2Realty: Amidst a global economic slowdown as a consequence of the US fiscal cliff and Eurozone debt crisis, India’s growth forecasts too have been revised downward over the last three quarters of the year. Even in 2013, it is unlikely that we will see a spurt in growth given the existing inflationary pressures and large fiscal deficit which could adversely impact the scope for policy stimulus in the country.