No Diwali sentiments for real estate
Buried under high debt and inability of developers to complete and hand over the pending projects well beyond commitments to hard-pressed consumers, the troubled housing sector is not witnessing any festive activity this year despite the latest cut in the policy interest rate by the Reserve Bank of India (RBI), an ASSOCHAM survey said. Based on data and information collected from 250 builders in the Delhi-NCR, Mumbai, Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun, the survey found that the demand for new projects is hard to come while new launches have come to a trickle, marked by lack of consumer confidence and cash deficit of the builders "Whatever market is there, it is mainly for the end-users and not for investors, sale has been increased for the smaller units (2 BHK and 3 BHK)", reveals the survey. "Customers are preferably looking for ready to move in property rather than going for under construction property. But not many properties fall in this category", adds ASSOCHAM secretary general D S Rawat.
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