Prediction of moderate growth for Indian realty
As per the predictions of research firm, Angel Broking, residential volumes would grow from flat to moderate rate on a sequential basis in the June quarters of 2012. The report states that the demand is weak due to high interest rates and elevated property prices.
Although the realty index is low, it is not as grim as in 2008. Few factors may prove favourable – project visibility, cash flow, net debt-equity and growing disposable income and refinancing of loans from the banking sector.
Report estimates that real estate prices are increasing especially in Mumbai and NCR. In both cities, inventory levels are expected to remain high, too. However, cost increase has been moderated. Amidst this scenario, new launches have been more rewarding for developers who have launched projects at a 10-15 per cent discount to prevailing market rates.
In the coming months high debt levels, falling absorptions and high inventories remain a challenge for the real estate sector.
To read more real estate news:
No bright light for real estates any soon
Source: Moneycontrol
Angel Broking, Banking sector, Delhi, elevated property prices, falling absorptions, high debt levels, high inventories, Indian realty sector, Mumbai, NCR, Realty News
