Maharashtra Chambers of Housing Industry (MCHI), most prominent body of the real estate developers today described the Union Budget presented by the Finance Minister Pranab Mukherjee as “Budget with few positive steps focused on the common man who is interested in buying a house in rural and urban areas”.
It would seem that the Union Budget 2011 pointedly ignored the larger issues affecting the Indian real estate sector at this sensitive stage of revival and growth.
With the reasonable expectation of a roof over the head not very long ago, the real estate boom in the last decade has scaled up the liberty of choice for the average home buyers. While the aspirations of even the middle and lower middle income with moderate budgets have gone up, there are very many residential projects launched in recent times that seem to fill the gap with the promise of faster deliveries, hi-tech amenities, luxurious lifestyle, lush green surroundings within the affordable range of 20-40 lakhs.
Real Estate may boast off to be the second largest economic activity and the largest employment provider in the economy, but when it comes to have a say in the policy making, they are found to be sulking.
Realty firm Ansal API is looking at a fund infusion of about Rs 500 crore from a host of private equity investors, including IL&FS Investment Managers and Red Fort Capital, for its ongoing construction work in north India.
In a change of stance, the state home department has decided to look into its own move to shift out the Yerawada police station on the Pune-Ahmednagar road and allow commercial exploitation of the three-acre plot on which it stands.
Pune based Phadnis Infrastructure, a group engaged in infrastructure development, hospitality business, real estate, power and telecommunication is off to a flying start in the infrastructure business. Phadnis Group has bagged a contract to build the prestigious ESIC Nursing College and Auditorium at ESIC Hospital, Indiranagar – Bangalore. The total project cost of this project is around Rs.62 Cr and the project is likely to be completed by March 2012.
Urbanization rate is on the increase – and while there had been a few setbacks over the past few years, the Indian luxury retail market is firmly back now. The economy once again supports the rationale for spending on luxury goods, and it will continue to do so.
The time of the year has come when everyone is dreaming about the Finance Minister’s briefcase. Though real estate is ready with its list of expectations, experts believe that this year it would be good to expect much from the government owing to the kind of fiscal deficit government is going through. Expectations are high because of the increase in home loan interest rates, which have hampered the affordability of the buyer.
If you are living as a tenant in Mumbai and seeking to buy a house this year, there seem to be quite a few confusions going around. While some of the reports and projected forecasts may give you a ray of hope, it would rather mislead you and your wait for a cheaper home may actually cost you to pay more in future.