INFODEA

Lack of PP bothers real estate sector

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S Vishnu Sharma, INN/Chennai, @infodeaofficial

Lack of purchase power among the people doesn’t seem to hold good news for real estate sector. While economic slowdown has already become a prominent topic for talk, Infodea went ahead to know about the effects of economic slowdown on real estate sector.

The news website spoke to people from Chennai who have been associated with the real estate sector for more than a decade.

Various estimates may say that real estate is expected to become an industry worth one trillion by 2030 and the sector is expected to contribute about 13 percent to the nation’s GDP.

However real estate professionals say recovery in the real estate sector has not been bright post demonetization. Non-Resident Indians (NRIs) have managed to show more interest in real estate sector and this has come with some good news.

According to various surveys, NRIs have been showing good deal of interest in property in Hyderabad, Bangalore, Ahmedabad and Chennai. However there is a difference. NRIs seem to invest strongly in residential properties in Pune  so that sale of it can give them handsome returns. Popularity of Pune also draws the attention of everybody. Providing accommodation to the family is the motive to purchase houses in Chennai. Trend in Chennai is to invest on commercial property, reduction in value of our rupee is also helping drive investment, he says.Ajit Chordia, Khivraj Group

 

Real estate sector has positive vibes on the smart city scheme. While the scheme covers only a few cities currently, lateron we expect many more cities to come under its ambit. Smart city scheme helps create infrastructure, quality housing and world class amenities.

This is expected to enhance interest in people to buy houses and prove beneficial to real-estate sector subsequently, he says.Sachin Mehta, Jain Housing

Real estate sector is witnessing improvement currently. Post demonetisation, the sector has not seen improvement. Cash is used for transactions in real estate and blackmoney used to be a good part of it.

However, demonetisation proved troublesome to those who were trying to make money the wrong way. People doing business honestly had nothing to lose.Durga Prasad, Olympia group

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