New Year cheer for Indian investment property market?

photo credit: The Wandering Angel
The New Year could finally bring some welcome relief for the Indian real estate market as the government looks to help out the sector, building associations have said.

According to Maa Properties, the Deccan Chronicle reports an expected bail out package from officials could see interest rates fall, prompting new house sales.

Construction groups say such moves will be essential if the property market is to start staging a recovery in 2009.

Quoted by the Deccan Chronicle, C. Sekhar Reddy, president of the AP Builders Forum, said:

“The New Year will be positive for the realty sector since the government will adopt people-friendly policies in an election year.

“The package, which is expected from the government, is set to be a boon for the realty sector, which is now facing several challenges.”

Earlier this week The Associated Chambers of Commerce and Industry of India (Assocham) made a six-point list of demands on the government, designed to help the economy.

The wish list included a cut in interest rates for home buyers and a ten per cent reduction in personal income tax rates.

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