Track2Realty: In India, labour shortage is pegged to go up by 65 per cent by the next decade with more workforce moving from traditional brick and mortar industry like the construction and real estate sectors to more lucrative industries such as IT, ITeS, Banking and Telecom.
Trck2Realty Exclusive: Western suburbs of Mumbai are bursting at its seams, and its infrastructure facilities are outdated. Draining systems built in the times of the British era are still prevalent in the city. There is a dire need to overhaul this system.
Track2Realty Exclusive: Slow economic growth affecting housing market
The recent Indian economic growth has been hampered by several domestic and global factors, resulting in the GDP growth plunging to 3 years low at 5.3% in 2QFY13[1]. Factors such as weak global economy, high interest rates, high inflation, high fiscal deficit, and lack of reforms were the primary reason affecting the GDP growth.
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 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 Exclusive Yearly Analysis: The cash in the industry is fast drying up. Not because banks are reluctant to finance projects but because investors are now shying away as realtors are not being able to deliver on the high returns they promised to investors.
Track2Realty-Agencies: The fate of the Real Estate Regulatory Bill hangs in balance even after PMO steps in to resolve differences between two ministries—Housing and Urban Poverty Alleviation and Urban Development— threatening to further delay the long pending Bill. The PMO has reportedly stepped in and directed the warring ministries to quickly resolve their issues over the bill which aims to protect property buyer’s interest from unscrupulous realtors.
Track2Realty Exclusive: The capital city is witnessing a face lift with various infrastructural initiatives, increasing prominence of satellite towns and emergence of new business districts. The Master Plan 2021 aims at making Delhi “a global metropolis and a world class city” for which necessary initiatives are being undertaken by both the Government and the private sector.
Track2Realty Exclusive-Yearly Analysis: To say that Indian real estate is standing on a shaky foundation would be like stating the obvious. Pressure is increasingly building on Indian developers. High mortgage rates and the slowest economic growth in nearly a decade are taking a toll on demand. Costs are rising, too. The Price of steel and concrete has jumped to double digit. The pipeline of cash has already dried up.
Track2Realty Exclusive Yearly Analysis: Some analysts believe the economy of the scale in the business is helping the developers to hold the stock. They maintain the developer does not put in his own money in financing a project. Even though the cost of land in cities like Mumbai and Delhi accounts for 70-80 percent of the construction cost, at least 50 per cent of the projects are in joint venture with the land owner.