The realty industry in India faced a negative sentiment in 2011, with developers, buyers and investors caught in a quagmire due to a host of unfavourable conditions, notably a slowdown in the economy, muted flow foreign direct investment, rising inflation, fluid stock market and rising interest rates.
The realty sector in 2012, will be very optimistic as lot of demand in both in the residential as well commercial segment will improve. The Government being very supportive with the kind of policies implemented and the regulations formulated in the current past, is a positive sign for the industry as a whole.
Talking about the previous year for real-estate sector, Ashwani Prakash, ED, Paramount Group, said that the last year for real estate was full of happenings. It has seen a lot of ups and downs during the year 2011 .
The growth in the sector has seen steep curves. And talking about the likely scenario in coming year, the year 2012 seems to be providing relief to the industry with the market once again settling down and the customers are out again to full fill their residential requirements.
However, it is felt that the year 2011 was very disappointing as there were lot of issues which troubled the sector like Noida Extension Land Acquisition issue, Increased rate of interest for home loans, steep rise in the building raw material cost and High diesel cost.
How would be the Real Estate Industry in 2012?
The scenario suggest, the developers are going through a very tough phase and passing of Real Estate Regulatory Bill in the current winter session will add more to it. The Government should be flexible in finalizing the norms of this bill and should take a holistic view. However there is a huge demand of affordable housing and tremendous scope for developers to prove their role to fulfil this gap but all subject to positive approach.
