Real Estate sentiments sluggish this Diwali despite great offers: ASSOCHAM

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts
    Real Estate sentiments sluggish this Diwali: ASSOCHAM
    Despite aggressive marketing and great offers made by developers on the eve of Diwali festival, the investment in the property have remained lukewarm due to high prices of houses in and around the NCR region. Major factors cited have been high prices of land and the unprecedented rise in the cost of construction materials, iron, cement, labour etc., says the ASSOCHAM survey.
     

    There has been a surge in demand of only 20% on the eve of the festival comparing to the normal average sale per month. The builders and the investors say like in the past they had been expecting 100% jump both in new and the huge inventories lying at the disposal of the developers on the festival seasons.

    The survey was carried out in the major cities like Delhi-NCR, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabd, Pune, Chandigarh, Dehradun etc. The survey was able to gather information from 250 property dealers, noted 40 builders/ developers and 20 divisions of housing financing.

    Majority of the developers have complaint that the inordinate delays in getting necessary approvals from multiple regulations and authorities result in cost and times overruns. The another factor reported was that in the absence of industry status apathy of banks in financing the real estate projects, adds the ASSOCHAM survey.

    Mr. Rawat also said although the prices had generally remained stable - both for commercial and residential properties, the lack of buoyancy and weak investor sentiments have added to the woes of developers.

    ASSOCHAM report said the government should act as a facilitator rather than a regulator of the real estate projects, particularly where demand is more than supply. Also, all approvals of real estate projects must be accorded in a time bound, accountable and simplifies manner. Process and status of all approvals be made on line so as to bring transparency.

     

    The state Governments should complete their land records process and make the same computerized and supporting infrastructure; not only transportation and logistics but also water, power, housing, healthcare and sanitation must be taken up in tandem.

    The Government must grant industry status to real estate sector and the real estate projects must be classified as infrastructure and priority lending should be made available for keeping pace with the demand and supply scenario.

    GoodReturns.in

    Story first published: Friday, November 16, 2012, 16:30 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more