India Real Estate in Fragile Balance at the Moment

Dhruva Jyoti Chowdhury, Kolkata, India

Though the Indian real estate market is at present estimated to roughly US $16 billion, and has been ever growing, has been marred by various problems not only due to the Government policies, builders and the finance companies but even by the people in general who are putting in huge amounts of money to buy those properties.

While the market regulator SEBI has clearly said that it will allow registration of selective hedge funds that too at the merit of each case.

The Indian market which is expected to reach US $60 billion by 2010 and commercial real estate market would reach US$12 billion by the same time.

Shares of foreign investments in real estate will increase from current US$3.12 billion to about US$25-28 billion by 2010, matters pertaining to the horticultural planning, infrastructure development and potable water facilities remains unattended still. Another aspect of parking facilities, however, remains another area of neglect. Most of the multi storied buildings lack a proper parking facility for the apartment owners in most of the big cities.

The Indian market is mostly driven by the buoyant economy, flourishing IT/ITES sector, banking and financial, retail sector, ascending lending rates by private and public banks is also affecting the genuine buyers, investors, bankers and developers. The rates, which have increased by nearly 2 per cent in the last six months, are now having a deep impact on the coffers of the employed class.

Remember that all the establishments concerned with the promotion of real estate in the country is a cluster of groups consisting of industrial and service sectors like real estate (housing construction, construction of commercial offices, retail and industrial buildings and infrastructure projects), brokerage services, real estate finance services (mortgage banking, real estate investment), real estate operations, property management, architecture and design. And if any one of these does not goes parallel with the other or lack of planning and foresightedness, can bring immense loss to everybody concerned.

The fast development in the basic infrastructure among factors fuelling real estate boom, hold quite a promise in the group housing sector, considered the best alternative to solve the burgeoning needs of the people. Though the state government has already announced two separate multi-storied housing facilities to provide affordable houses for the urban poor, it is yet to come out with fresh schemes to cater to the needs of a large number of middle-class families wishing to have a roof over their heads. It is high time everyone get their socks up so that they do not suffer any loss due to carelessness and lack of foresight.

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