Builders hope for a turnaround
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They look forward to the Union Budget with the hope that there will be proposals to revive the real estate sector.
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After being down for more than a year, the real estate market is showing signs of recovery. Whether this is factual or illusory, one thing is sure: the realty sector cannot lie low for long. A reason cited for this is the huge demand for housing.
Builders in Kozhikode city say that the new government at the Centre holds out hope for a turnaround in the economy.
After the recent surge, the stock markets are going to stabilise after a few sessions of correction.
They look forward to the presentation of the budget after the new government assumes office. Some of the budget proposals, they hope, will revive the sagging real estate industry.
The government has already indicated that it will focus on foreign direct investment in some sectors. The pro-reform policies in the financial sector will, in turn, give a boost to the construction sector, builders say.
Earlier, the Reserve Bank of India (RBI) has made a series of initiatives to prop up the banking sector. Some nationalised banks have positively responded to the stimulus packages. All the policies have breathed fresh life into the real estate sector. But it has not fully recovered.
Builders in the city have come up with new projects concentrating on budget flats. Landmark Builders has launched a project at Methottuthazham, just 3.5 km from Arayadathupalam. It is offering a two-bedroom flat at the rate of Rs.9.99 lakh, excluding other rates such as stamp duty.
A Chennai-based builder is planning to construct 30 villas on 1.2 hectares of land at Palazhi. The scheme offers houses in six or eight cents of land. The price is Rs.40-45 lakh.
KTC Housing has come up with a venture, Pearl Park, at Thiruvannur. It has started a free-launch offer for the first 25 bookings. The pre-launch offer is Rs.8.5 lakh for a one-bedroom flat, Rs.12.75 lakh for a two-bedroom flat and Rs.16.5 lakh for a three-bedroom flat.
Value for money
According to the company, the offer is a perfect value-for-money proposition. Each intelligently designed home will have amenities to match premium living.
Now, genuine buyers have started enquiring and making bookings when companies launch affordable housing projects.
Many people who had purchased land two years ago have started selling it to genuine buyers.
This is in spite of land transactions coming to a standstill for the past six months in Kozhikode.
A few builders are facing a shortage of funds. In spite of the Reserve Bank’s attempt to boost the financial sector, banks refuse to lend money to builders. Some of the builders thus have started to raise long-term funds.
Several private limited companies have also embarked on housing finance. One of the ambitious projects is of Tata Capital Housing Finance, a subsidiary of Tata Capital.
BIJU GOVIND
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