Indian developers increase pressure for real estate market help

November 20, 2008 by OPPE News

Indian developers are already switching to more mid-market schemes while pressing the government for a market capital injection, a research firm has said.

Cityscape Intelligence said many builders are

“beginning to change their business strategy”

as the real estate market slows.

Pressure is also growing for lower interest rates to benefit developers, property investment professionals and end users.

Cityscape questioned experts on the affordable housing issue ahead of the Cityscape India property exhibition, being held in Mumbai from December 8 to 10.

Graham Wood, exhibiiton director, said:

“It has been said many times before - the demand for low cost affordable housing in India is undeniable. However prices need to be realistic to begin with and mortgages affordable as well.

“Sentiment could be the only stumbling block, which if removed could energise India’s entire real estate sector.”

Although India’s property market has experienced a recent slump after several boom years, it is widely thought a revival is on the cards in future.

The country still has a huge new homes shortage, but a squeeze on lending and inflated prices have stalled transactions.

Cityscape India, held at the Bombay Exhibition Centre, will feature the world’s top property consultants and developers and will involve display stands and speeches.

Donald Trump junior will speak at the event, as will Kumari Selja, Indian minister of state for housing and urban poverty alleviation.