Inflation Negative Impact on Real Estate Prices
No Comments Sub Category:Uncategorized Posted On: Sep 17, 2011
In Jamshedpur, Vishal Gupta the managing director of Ashiana Housing Ltd a mid-level builder reported saying that the July figures were quite impressive with 1.65 lakh sq ft area that was booked though they were in the apprehension that they would not meet the expected financial figure this year and also falling finanacial year because of the high rise in inflation every now and then and also that the several realtors, including Ashiana, which is an NSE and BSE listed company, had already stopped purchasing land for its new projects in case of long-term commercial loans. Purchase of new lands has been stopped for now and monitoring over the prevailing situations are being taken care off Gupta added.
T C Mohanty, former Jamshedpur chapter president of the Builders’ Association of India reported saying that the jobs across the spectrum were taken off and the banks were in frequent fluctuations and the financial market was also high. The existing tax exemption benefits was said be too small and mid-level players would rather continue beyond the current fiscal year by March 31, 2011. Income-tax exemption benefits introduced by the Union government during the economic year has seen a slowdown since three years. There was less scope for small and mid-level players in constructing units on less than 1,500 sq ft build-up areas.
Source: The Times of India
Tags:
Ashiana Housing Ltd, BSE, Builders' Association of India, Commercial loans, Fiscal year, Jamshedpur, NSE, Union government
