Diwali Festival Failed to Light Up real Estate Sector: ASSOCHAM Survey


Neither aggressive marketing nor new offers were able to light up the real estate sector in India ahead of Diwali festival, says a survey by industry lobby ASSOCHAM (Associated Chambers of Commerce and Industry of India).

Builders & investors were expecting a 100% jump in demand ahead of the festival. However, it rose only 20%.

Investment in property remained lukewarm due to high prices of houses in and around the NCR (national capital region).

Major factors for the subdued demands were high plot of land prices &  the unprecedented rise in cost of construction materials, iron & cement, the ASSOCHAM survey said  recently.

The survey was carried out in Delhi - NCR, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabd, Pune, Chandigarh & Dehradun.

Mr. D.S. Rawat, Secretary General, ASSOCHAM said, "The housing inventory in NCR is huge as a large number of projects are coming up in peripheral areas. Although prices had generally remained stable - both for commercial & residential properties -- the lack of buoyancy & weak investor sentiments added to the woes of developers"

The industry body ASSOCHAM said the central government should grant industry status to the real estate sector & projects must be classified as infrastructure & priority lending should be made available for keeping pace with demand & supply.
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