Tuesday, July 26, 2011

Housing sector is in Crisis

              The Confederation of Real Estate Developers' Association of India (CREDAI), has estimated that the sector will face a funding shortage to the tune of $70 billion over the next five years.
              CREDAI President Lalit Kumar Jain said such a situation might create hurdles for the industry to grow if the Reserve Bank of India is not "proactive".
              "Foreign investments do not solve the problem. They are very costly and cannot be affordable. There has to be generation of funds internally and RBI has to be proactive on this issue," Jain added.
              He said any FDI into the country would expect a 30 per cent return on investment, which is not possible in real estate projects and hence not advisable.