How is the Indian real estate sector faring? It seems that the sector has been able to combat the brunt of downturn and now it is advancing towards making more profit. These developments have made Associated Chambers of Commerce and Industry of India (Assocham) conclude the sector will see signs of recovery in the next three months.
The survey report was prepared by the industry lobby and confirms 88 percent of chief executives of real estate firms are hopeful of a quick revival within the next three months since developers are shifting 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.
As indicated by the survey report, a thumping 92 percent of chief executives considered reasonably priced housing to encourage demand in the real estate sector, with about 84 percent saying this segment had been least impacted by falling demand. It is also 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 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. On the other hand, almost 76 percent of the respondents said the incentive given to the sector through fiscal and monetary measures was not enough. With regard to policy measures, 64 percent of respondents were of the view that the central bank’s move to enable banks to restructure loans to developers has been the most successful in improving liquidity for the real estate sector.
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