photo credit: wildxplorer
Demand for new homes for sale is expected to pick up dramatically in India’s smaller cities next year, experts have said.
Bosses at Sankalpan Group, a fast-growing development firm, said interest in places like Mangalore and Nagpur will increase by 25 per cent, the Financial Express reports.
Branded ‘tier II and tier III’ cities, India’s mid-size urban areas are currently seeing a property demand growth of about five per cent, the paper says.
Increasing interest in affordable housing is widely expected to help India’s real estate market make a recovery in 2009 to 2010.
Quoted by the Express, Anand Gupta, chairman of the Builders Association of India, said:
“There would also be some acceleration in sales to the tune of 10 per cent to 12 per cent on tier I city outskirts where affordable housing is coming up through the ‘budget home schemes’.”
According to the paper, some of India’s biggest developers, including the likes of Keystone and Evershine, have already adapted to building township schemes featuring more affordable homes.
The Planning Commission recently said the Indian government may have to intervene in 2009 to help the real estate market.
Although officials have succeeded in driving down interest rates, Montek Singh Ahluwalia, deputy head of the commission, has said a new plan may be needed next year to get the country through the downturn.
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the real estate scene in india is depressing. much of the housing is a scam between real estate mafia like power houses and the politicians. the politicians have advance knowledge of lands and buy large tracts, and sell them at a higher price to the realty barons who then price it even higher with artificial demand. the end result is a middle class who’d otherwise divert all that excess fund in buying an overpriced apartment to other investments.
the rise of “affordable homes” is also another scam, as they deliberately price it lower with a sub standard product. its like you pay a premium for our standard homes (dubbed luxury and slapped a hefty price for an elite label), or, you pay a standard price for an ordinary deal. either ways the realty barons win. i hope this correction is long and painful for the real estate barons.
I also hope that there are legislation pressure from private enterprises like banks forcing it on government to reign in the black money. its a common practise in india to have half the money accepted in black. real estate is completely dishonest. its probably one field where things are most apparent in having loads of black money. this parallel economy hurts the country.