Even if we detest to delve into the contradictory reports on the existing health of the Indian realty sector, it can be found from the appearances alone that it is refurbishing bit by bit. There is no doubt that the scenario is bight and we are optimistic that the intensity will get a greater momentum with the passing of each day almost.
Take a look at the recently published report of the Federation of Indian Chambers of Commerce and Industry and Ernst & Young then. As per the report, softening interest rates and improved liquidity are increasing the demand in India’s residential segment. What is more, in accordance with a large number of analysts, the two-pronged strategy employed by builders, improving balance sheets and focusing on developing self-funded projects, have helped the market pick up to a great extent.
Apart from all these, it has also come to the knowledge that the demand in the residential segment witnessed a restoration because of the handiness of small-sized affordable apartments and deterioration in property prices all over India. Nevertheless the commercial, retail and hospitality segments were still struggling due to subdued demand from the IT/ITES sectors and multinationals, which are halting expansion plans in the country. “In the aftermath of the global economic slowdown, most retailers have deferred their expansion plans in India,” the report said.
It is also found, for the reason that the developers shifted their focus to self-funded projects due to the liquidity crunch, many even cancelled hospitality projects. “This has resulted in the widening of the demand-supply gap in hotels in the country,” the report stated.
However, there have been some uneven developments as well. As indicated by the report, New Delhi, the national capital, for the moment, is getting lots of attentions since it has been ranked
as the most preferred destination for real-estate developers and investors. Mumbai, which came a close second, scored better on the business environment index.
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