India's property market taking it easiest in 6 yrs: Jones Lang LaSalle

New Delhi: If you were going to believe that the Indian real estate market is going great guns, think again. As per reports by Jones Lang LaSalle, the Indian real estate segment is ona 6-year low growth path, which is making it rather tough for the builders and developers to come good in their trade. On a normal trend, one would see an average of 17% growth, as seen from 2007, but it seems this year it seems it will fall below 5.3%, a 9-year low.

"The Asia Pacific property market has paused, and the outlook for India will depend on its political, monetary and regulatory environment" said Colin Dyer, president and global chief executive officer of Jones Lang LaSalle, in an interview with Reuters on Tuesday. Indian developers have now taken to selling their biggest assets, just to meet their debts which are towering more by the day. This situation came into being after the slowdown in the Indian economy, which was also seen in the home buying market too with respect to residential, and even commercial space.

The other angle of this story is that the Indian policy making has been rather sluggish in the recent times. With the FDI in retail being a major obstacle, majority of the commercial space sales have actually come to a halt, which again has created a rather stale climate in the market in general which is the main reason for slowdown. It only waits to be seen whether the Indian government actually gets wind, and takes some action as the Finance Minister, P Chidambaram is keen on setting the financial weather right again via better investor confidence.

Source: daily.bhaskar.com