Indian Real Estate Forum - www.indianrealestateforum.com - View Single Post - Indian real estate to witness 15-20% price correction

Rashmi · 08-12-06

Industry experts expect mild price corrections in certain pockets in the country's mature real estate hubs.

A survey conducted by prominent international investors, private equity players, property developers and investment bankers - noted that the Indian real estate market is evolving fast and growing at an exceptional pace. However, it is plagued with information asymmetry as information dissemination is constrained and not regulatory mandated, unlike in capital markets.

The survey says return expectations also vary across sectors giving an indication about the perceived risk-return profile in various market segments. IT/ITeS is perceived to have lower risks compared to retail and hospitality. The lack of adequate infrastructure is the biggest challenge facing the real estate sector followed by regulatory ambiguities, rather issues like taxation structure and availability of funds.

What can be better news than this? Hope the industry takes note of the survey and implement measures to actually initiate price corrections.

08-12-06	#8
Rashmi Member Join Date: Nov 2006 Posts: 90 Thanks: 0 Thanked 0 Times in 0 Posts	Mild price corrections expected Industry experts expect mild price corrections in certain pockets in the country's mature real estate hubs. A survey conducted by prominent international investors, private equity players, property developers and investment bankers - noted that the Indian real estate market is evolving fast and growing at an exceptional pace. However, it is plagued with information asymmetry as information dissemination is constrained and not regulatory mandated, unlike in capital markets. The survey says return expectations also vary across sectors giving an indication about the perceived risk-return profile in various market segments. IT/ITeS is perceived to have lower risks compared to retail and hospitality. The lack of adequate infrastructure is the biggest challenge facing the real estate sector followed by regulatory ambiguities, rather issues like taxation structure and availability of funds. What can be better news than this? Hope the industry takes note of the survey and implement measures to actually initiate price corrections.