Developers foresee high growth in real estate

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New Delhi, Sept 03 (UNI) A majority of developers foresee high growth in the Indian real estate sector in the long term notwithstanding slowdown over the last 12 months, a survey claims.

Sixty two per cent of respondents across six cities of national capital region(NCR), Mumbai, Pune, Hyderabad, Chennai, Kolkata and Bangalore hold the growth optimism, survey by Ernst&Young says.

The survey report will be released at FICCI's International Real Estate summit in Mumbai on September 10.

Developers are keen in foraying into the affordable housing but want an enabling enviornment like government support, basic infrastructure support and low cost of land, the survey's findings say.

Almost 35 per cent developers define affordable housing in the range of Rs 10-15 lakh, while another 35 per cent developers value it in the range of Rs 15-25 lakh. INR1.5-2.5 million.

Seventy per cent respondents are inclined to expand beyond Delhi, Mumbai, Chennai, Hyderabad, Bangalore, Kolkata, Pune and Ahmedabad to hedge against market fluctuations in these eight cities.

While feeling the pinch of rising manpower and material costs, most developers'top concern is over inadequate availability of quality manpower. They say delays in approval and clearances are the biggest regulatory challenge for them with 80 developers underlining the need for an apex regulatory body for the real estate sector.

Commenting on the highlights of the survey, FICCI's secretary general Amit Mitra said release of the report at the summit will fuel ideas and opportunities while addressing industry challenges and showing the way forward to take the real estate sector to greater heights.

Mr Ganesh Raj of Ernst&Young said temporary slowdown in the market will be followed by sustained activity as a result of innovative formats, new geographies and flexible pricing and delivery mechanisms.

Given the growth in residential housing, organised retail and hospitality industries, the sector is likely to see increased investment activity, he added.

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