Real estate recovery in next three months: AssochamMay 28th, 2009 - 4:41 pm ICT by IANS
New Delhi, May 28 (IANS) India’s realtors believe the sector will see signs of recovery in the next three months, according to the Associated Chambers of Commerce and Industry of India (Assocham).
A survey report by the industry lobby said 88 percent of chief executives of real estate firms see a quick revival within the next three months as developers shift 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.
The survey report said a whopping 92 percent of chief executives considered affordable housing to kindle demand in the real estate sector, with about 84 percent saying this segment had been least impacted by falling demand.
It 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 sought 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.
About 76 percent of the respondents said the stimulus given to the sector through fiscal and monetary measures was inadequate.
Of all policy measures, 64 percent of respondents were of the view that the central bank’s move to allow banks to restructure loans to developers has been the most successful in improving liquidity for the real estate sector.
Additionally, 60 percent said a resurgent stock market would be the most prominent source of finance for the sector, while 28 percent thought bank credit was the most viable option.
Hefty funds raised through the qualified institutional placement route in the stock market (exceeding Rs.8,000 crore) along with debt restructuring would allow the developers to address their liquidity concerns.
Mumbai has been ranked as the most saturated in terms of real estate assets followed by Delhi, Bangalore, Chennai, Kolkata and Hyderabad.
- Tough year for realty, no respite seen in short-run (2011 in Retrospect) - Dec 29, 2011
- Making housing affordable: Realty industry needs budget boost (Comment) - Feb 26, 2012
- Realty industry has little to cheer from budget (Comment) - Mar 18, 2012
- Realty sector sore with union budget - Mar 16, 2012
- Dream of affordable homes gathers dust in Maharashtra - Apr 25, 2012
- Hosing sector demand to go up by 30 percent: FICCI - Oct 08, 2009
- Affordable housing hit badly in real estate slump (Comment) - Jul 15, 2012
- Real estate most preferred investment option: survey - Dec 12, 2010
- Real estate regulator bill will improve transparency: Selja - Nov 04, 2011
- Reality check on Sensex and India's realty industry (Comment) - Oct 07, 2010
- Reality sector resents black money accusations - May 29, 2012
- Chavan applies balm to angry realtors - May 02, 2012
- Constant rate hikes have further burdened realty industry (Comment) - Aug 03, 2011
- Single-window clearance for real estate projects urged - Apr 01, 2011
- Government committed to provide affordable housing - Jun 10, 2011
Tags: affordable housing, assocham, business barometer, chambers of commerce, chambers of commerce and industry, chief executives, commercial space, contraction, dwelling units, economic zones, industry of india, institutional placement, monetary measures, real estate sector, retail space, shortfall, stimulus, stock market, survey report, viable option