Reality Sector Falling short of meeting Demands of Houses

In view of the rising requirement and equally surging the excitement of putting their hands on dwelling apartments by ever rising urban population that stands at present at 377 million, the real estate is searching its hassle-free way to augment its supple chain.

Whereas the realty sector stake holders are desperately echoing their voices to seek government’s feed back in terms of providing land on affordable prices, lowering of interest on house-loans, structuring an integrated master plan, for each urban development center, putting in transparency in all dealings leading to real estate transactions etc. the government and agencies hope the real sector steak-holders need to transfer a part of benefits to the agriculturists whose land is being acquired or inject him as a steak-holders in the entir4e housing business as a partner.

The long overdue reforms of the real sector and putting in place a regulatory body to streamline the buying and selling of houses is still some moons away. The on-going developments of multistory building s in big cities such as Delhi, Mumbai, Bangalore, Chandigarh, and Chennai etc. have encouraged the rising middle class members to find at least a roof over their head. Still as the economic growth surges ahead, the present deficit of houses to meet the present requirement to the tune of 234 million houses is likely to go upward.

As the real sector’s activities are visible, leading to urbanization, it becomes an engine of economic boost. Every section of the society including labors, kisans, masons, building material suppliers, steel and cement producers and lakh of labors engaged in these productivities, besides developers, investors and even consumers share a pie of the financial transactions. Undoubtedly, the natural circulation of money a larger section of the society, gives a dignity of the poor people while earning their livelihood themselves.

The entire money given to the labour class comes to the market which further boosts production of white goods and other house-hold gadgets. Once urbanization at a particular place crops up, it turns into a hum of modernization, proving menial jobs to the illiterate and unskilled labors, may increase the valuation of the property of the area, increase the rental value of the houses, affording new opportunities to skilled and employable youths, attracts FDI. That gives rise to several financial and economic activities that draw larger swath of population in the generation of economic activities.

What the real sector is feeling the heat of increased interest rates of loans of houses and the absence of fully developed infrastructural facilities besides there is no clear and transparent policies guiding the real estate sector. This has led the blockage of FDI in the real sector as the the growing sentiments of despair in the real sector becomes visible. The investors and even end users are experiencing losing their purses a bit more in view of rising cost of construction of the houses.

Moreover, the pause that has emerged in the real sector segment in India is not without reason. Moreover, it is not due to the slow down in Indian economic growth either. The global heat of slow down that the major economies are bearing, has its impact on the Indian economy. The volatility in the rupee’s price against the dollar, the stock and share journey towards downward in India besides the developing economies including, that of Brazil, Russia, China, Japan and the sovereign debt crisis in Eurozone Countries, the solution is not visible at the moment.

However, major economists and credit rating agencies such as Goldman Sachs force fully predict that the major economies of the glob may come out from the present crisis in their sentiments and once again become the drivers of the growth and are likely to lead the world economy back to better times.

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