'More efforts needed to boost Indian housing sector'
Monday, 8 December 2008
MUMBAI, Dec 7 (Internet): Real estate players are sceptical about how much these measures would actually boost the consumer confidence, which is currently weighed down by negative sentiments.
According to Jai Mavani, KPMG's executive director and head of real estate practice, "The government's move to increase liquidity and ease credit crunch is a step in the right direction and this should result in cooling of interest rates. However, the government needs to look beyond these monetary policies and boost the mid-market or low-income housing projects, which would perk up the housing sector. Another factor impacting demand is the consumer sentiment, which is yet to reverse. Though real estate prices have been correcting, property buyers feel that prices are still firm and expect to fall further."
According to Jai Mavani, KPMG's executive director and head of real estate practice, "The government's move to increase liquidity and ease credit crunch is a step in the right direction and this should result in cooling of interest rates. However, the government needs to look beyond these monetary policies and boost the mid-market or low-income housing projects, which would perk up the housing sector. Another factor impacting demand is the consumer sentiment, which is yet to reverse. Though real estate prices have been correcting, property buyers feel that prices are still firm and expect to fall further."