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Housing claims plummets in secondary cities

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Housing demand in small towns observed 25% drop in the month of February-July 2008 span because of the soaring cost of borrowing. The real estate dealings have gone down by almost 25% in most of the Tiers II & III cities among February and July 2008.
ASSOCHAM Secretary General D.S. Rawat said to www.propertykhazana.com that, “About 15 Million people in and around 30-40 Tier II & III cities are not capable to buy properties because of soaring price rises and interest rate had moisten their interest and battered their budgets.” Assocham study is based on the criticism from joined realty chiefs like Parsvnath, Omaxe, DLF, Unitech and BPTP which are developing ventures in small towns.
As per to the sources saying @ the www.propertykhazana.com, in addition of rising prices, non-availability of investments and construction materials like Bricks, Cement and Steel and Power scarcity also caused excessive delays in the venture conclusion. Chamber has advised the Govt. to set up REITs to carry on the desired class of institutional investors to support the domestic realty market. ASSOCHAM says REITs can also assist to develop CMBS market and form a source of inexpensive debt for the commercial realty. The realty fashion has not been estimated as complimentary by the forecasters.
Source: NBTVLIVE

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