Realty Outlook Positive In Mid-To-Long Term

Describing the current bearish trend of the real estate sector a ‘transitory slowdown’, consultancy firm Ernst and Young said that the outlook of the sector is still ‘positive’ in the medium-to-long term.

“Ernst and Young believes that the market is witnessing a transitory slowdown. However, considering the opportunities present as well as the strong economic fundamental drivers, the outlook for the mid-to-long term is positive,” it said in a report released at a Ficci-organized summit here.

The momentum of the market in the mid-to-long term would be sustained by the emergence of new markets, innovative products, ongoing corporatisation of the sector, integration with global markets, greater transparency and new funding mechanisms, it said.

The real estate sector is set to grow by 100 times in the next ten years as compared with the past 10 years, though profit margin would be less, said Hiranandani Group of Companies Managing Director Niranjan Hiranandani.

“The age of super-profit is over for the real estate sector and developers will have to remain content with low profit margins. If you do not believe in this and keep on waiting, somebody else will take business away from you,” Hiranandani said.

2 Comments

  1. Posted September 15, 2008 at 3:11 am | Permalink

    At a point of time when the real estate graph is going downwards, a FICCI-Ernst & Young survey reveals that the sector would embark on a high growth trajectory in the long run. The report gave several pointers of the developments slated to happen in the sector. The full report would be released on September 10 at a real estate summit, which would have the presence of all stakeholders. The segments in which significant growth is expected in the Indian real estate sector include healthcare infrastructure, logistics and warehousing and affordable housing formats. The FICCI-Ernst & Young Real Estate Report is based on the qualitative survey conducted by Ernst & Young across six prominent cities comprising Delhi NCR, Mumbai, Pune, Hyderabad, Chennai, Kolkata and Bangalore.For more view- realtydigest.blogspot.com

  2. Economical Houses Pune
    Posted September 15, 2008 at 3:58 am | Permalink

    I completely agree with this – the real estate market will definitely be in the lime-light in the future … keeping mid-long term in mind.
    The market conditions should definitely stabilize by then and the market would be a lot more open for all classes of people.
    The stabilization of interests and loans should further help the cause.

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