photo credit: harpreet thinking
India needs to see greater developer focus on balancing supply and demand to correct a current market slowdown, according to experts.
The head of India’s leading builders’ association told Sify.com that a tax relief programme for buyers could also help kick start sales.
Kumar Gera, chairman of the Confederation of Real Estate Developers’ Associations of India (Credai), gave the site his views on the outlook for the entire Indian real estate market.
Quoted by Sify.com, he said:
“We should focus on a balance between supply and demand. On the one hand, there is latent demand, and on the other, a negative sentiment is being created.
“Moreover, a conducive environment should be created by the people who are in power.”
He also said he expects liquidity problems for Indian developers to ease over the next six months, following a series of measures introduced by the Reserve Bank of India.
Mr Gera also told the site:
“We have approached the government. We have even submitted a paper on special residential zones. The government should take a proactive role and must fuel the real estate sector.”
India’s real estate sector is still expected to grow thanks to an ongoing shortage of 21 million homes and an impending migration of workers from rural to urban centres.
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Gera is a Ex-Mafia Don.
I do not understand, why does he want Tax-relief for sales. This will just encourage Speculation. Again, lower interest rate will increase speculation.
The only way real buyers (consumers) will be benefitted is by reducing psqft rates.
And where did he get figure of 21m homes? Is there a proven stastical base agains this figure?
What is very clear is that Supply is more than Demand.
The prices have to go down by 65-70% in order to revive sales.