Karnataka - Bangalore   

Expect corrections in real estate sector: experts

Bangalore: Trends for the real estate scene in India are “largely positive” but it is entering a cycle of corrections currently, according to speakers at the Indo American Chamber of Commerce seminar on ‘Changing Trends in Indian Real Estate Sector’, held here on Saturday.

Kok Huat Goh, Managing Director, Tishman Speyer, U.S., which has a joint venture with ICICI Venture, said: “The growth trend of $20 billion private equity being attracted to this sector in the past few years, is seeing a slow down now. But property prices are beginning to rise again.”

The Karnataka Government reported a 40 per cent increase last year in revenues from property registration, and U.S. companies thinking of more offshoring may help the Information Technology Enabled Services (ITES) sector here sustain growth in the long term. This, in turn, would encourage more overseas investment into the realty sector. Mike Holland, Chief Executive Officer, Assetz Property Group operating across South India, said, “Foreign investors consider factors such as supply of suitable land, cost of material and logistics, the regulatory environment and taxation.”

Abrupt changes in taxes would affect pricing and market, he said. Syed Mohamed Beary, Chairman and Managing Director, Beary’s Group, suggested that more developers could go for the ‘green building’ concept as a long-term vision for the environment.

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