Builders have a reason to cheer. Compared to business conducted by them from October 2008 to April 2009, this June saw an upswing. And it continued through July, says George E. George, chairman of the Kerala Builders Forum.
“The downslide has stopped and we are hopeful that the market will start picking up soon,” he says. There is no fresh stock; so, if the demand sustains, builders will get the required momentum to start again, he adds.
Housing is a requirement and buyers have the best rates available now, says Antony Kunnel, secretary of the forum. Since the fear of job losses no longer lingers, investors are looking back to where they had left off, perhaps.
Mr. George and Mr. Antony are quick to deny that the surge in the two months is because of the NRI influx at this time of the year. Rather, they believe that it will be a new beginning. People still are earning their salaries and they continue to have some expendable income.
“The money is going to flow back here,” says Mr. George. It is because the investors have more trust in the Indian economy than any other. “It is good to hear when NRIs and the general public talk positively about India’s growth, while India-bashing was a favourite pastime some time ago,” he adds. The trust in Indian banks has increased manifold, as the country has proved to be more resilient in facing the recession.
It is not just the big builders who are feeling the cheer. Jayanthan Namboothiripad, builder from Thripunithura, says that there have been many enquiries and quite a few conversions of them to purchases in the past couple of months. The builders say that funds left for investment will be parked in the real estate and property sectors, providing the required boost to the sector, though the government has not announced any sops.
It is “advantage India,” says Mr. George. The stock markets are going up, the elections have brought in a stable government and the market is not depressing at all. The focus of the builders is on completing ongoing projects and start projects announced earlier when the going gets steady.
Mr. Kunnel says that if the government brings in more regulations in the real estate sector, people will have more faith in the transactions of construction companies.
As part of the movement started by the forum in its bid to achieve industry status, builders have been asked to have a strict valuation process. “We have come a long way from what the sector was about five-six years ago,” he says. But there is much more to be done, he adds.
News Published Under: The Hindu