Realty Sector revival expected with price corrections

Submitted by retimes on Fri, 2009-10-02 22:39

As per Associated Chambers of Commerce and Industry of India (ASSOCHAM) report, realty industry can see see a quick recovery within the next three months as developers shift towards affordable housing and property prices undergo significant correction. While luxury housing segment, special economic zones (SEZs), retail space and commercial has all witnessed a demand contraction, affordable housing remains most resilient segment with less contraction.

RIB's move to allow banks to restructure loans to developers has improved liquidity for the real estate sector as well as the resurgent stock market offered a prominent source of finance for the sector. Funds raised through the qualified institutional placement route in the stock market along with debt restructuring would allow the developers to address their liquidity concerns.

Firms like DHFL has tied up with builders across rural and semi-urban India to market affordable projects under its low-cost housing schemes for low-wage earners also in the suburban areas of Mumbai, Chennai, Ahmedabad and Hyderabad, etc. It also plans to launch similar projects in Virar, Karjat and Badlapur, distant suburbs of Mumbai, Ahmedabad, Chennai and Hyderabad. Tata Group is also hoping to close a $1 billion infrastructure fund this year and plans to invest it through its realty and infrastructure unit.

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