Reviving Real Estate is Good News for us all

Reviving Real Estate is Good News for us all


After undergoing a slump, real estate in India is poised for a comeback. This means good news for a host of other industries related to construction. Mukta Naik recounts the trends in the industry for 2010.

Market sentiments have undergone a roller coaster ride in the past eighteen months in the Indian business environment. More so for real estate, which is a high-risk, high-investment and high-involvement business.

During the global economic recession, cash flow was severely restricted both to the developer segment as well as to consumers as home loans became expensive. The stimulus package came as a relief, offering tax reprieves to builders and also sweetening the pill for buyers of middle-income housing with an interest subsidy offered on home loans less than Rs ten lakhs. Policy measures like these as well as a concerted move on the part of builders to lower prices, focus of completing existing projects and offering customer-friendly schemes worked to slowly turn around the mood for the residential housing market. Commercial real estate, more directly connected to the larger economy, continued to be on the backburner.

Reviving Real Estate is Good News for us all

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NBM&CW July 2010

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