New Delhi: The real estate sector, which is reeling under the global economic slowdown, could recover in the next three months as demand for housing has improved due to price correction, industry body Assocham said in a survey.
The developers are hoping for some policy actions in the upcoming budget to revive the sector, which they feel would be key for the speedy recovery.
“Majority of the 25 real estate firms surveyed are sensing a quick revival in the sectoral activity within the next three months as developer’s strategic shift towards affordable housing and a significant price correction in the housing projects has pepped up the sale of residential property,” it said.
About 92% of the developers considered affordable housing as the most dominating segment to shore up the demand in real estate sector.
“The policy actions supplementing the robust demand in the housing sector is likely to hold the key for a speedy recovery phase in the sector,” it said.
At a time when luxury housing, SEZ, retail and commercial space were witnessing steep contraction in demand, affordable housing was the single most resilient segment, it added.
On the policy front, respondents sought single window clearance for all schemes under affordable housing in the line of SEZs to enable fast development of units and achieve the shortfall of about 26 million houses at the earliest.
About 76% of the developers stated that the stimuli given to the sector through fiscal and monetary measures were inadequate to help boost the demand-supply scenario.
“In the present market scenario, 60% perceived resurgent stock market as the most prominent source of finance to fund the sector’s cash requirement, followed by 28% viewing bank credit as the best viable option,” it said.