Friday, February 3, 2012

Indian real estate

Indian real estate companies are facing a reality check

The growth of real estate in India in recent years, or regular, healthy, yet really taken regulirano. Zemlja Ballooning sector with foreign players such as Lehman and the private operators who are in the league.

The trend has been the growth of the culture on the Mall from the government abuse of special economic zones (SEZ) policy brought triggered. In fact, the SEZ would be based on the large property extends to allegedly purchased for export production, mean for luxury apartments for the very rich and the Indians are used abroad, of arable land. This small town has sudddenly Realty operator, they could take advantage of foreign funds helped found. Black money plays an important role and foreign players in this part of their Indian partners to leave, but do not mind profits.

Unfortunately, foreign direct investment, which should promote the production, promotion of real estate which is not associated with growth. This has contributed to inflation and the Reserve Bank had to intervene to limit bank lending. The bank lending has come in the last two years. Centers are also shown empty, and many people are going to go there to enjoy the air conditioning to avoid the summer heat than in the shopping basket in the true sense.

The Mad Hatter party to end, and the fall of Lehman really a blessing in disguise. Private equity will evaporate as their sources of funding dry up.

Mushrooming real estate in India is unhealthy and socially sustainable. Prices must come to more reasonable levels. We need a housing policy that will have a greater respect for the balanced development and especially for the housing needs of the people to correct.

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