India’s real estate sector is undergoing a “transitory slowdown” with the outlook for the industry still positive, experts have said.
Consultants Ernst and Young made the comment in a report released at a summit, according to the Economic Times.
According to the publication, the arrival of new markets, fresh products, an ongoing corporatisation of the sector, better transparency and new funding mechanisms will drive the future promise.
Quoted by the paper, the report reads:
“Ernst and Young believes that the market is witnessing a transitory slowdown.
“However, considering the opportunities present as well as the strong economic fundamental drivers, the outlook for the mid-to-long term is positive.”
Ernst and Young has previously said more affordable housing would drive a future boom in Indian real estate.
The sector is set to grow again, other experts have previously confirmed, although profit margins could be less thanks to the greater focus on building cheaper homes.
Ernst and Young’s global real estate outlook for the year 2007 correctly pinpointed India as a key market for infrastructure and real estate investment.
The consultancy has also said one of the main barriers to growth in India is a lack of sanitation, although help has been on hand from the World Bank to improve the situation.
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