Real Estate sentiments get sluggish during Diwali: ASSOCHAM
Despite aggressive marketing and great offers made by developers on the eve of Diwali festival, investment in property has been lukewarm due to high price of housing in and around NCR region.
The major factors cited were high price of land and the unprecedented rise in the cost of construction materials, iron, cement and labour, a survey conducted by ASSOCHAM said.
There has been a surge in the demand of only 20 per cent on the eve of the festival compared to the normal average sale per month.
The builders and the investors said as in the past they had been expecting 100 per cent jump both in new and the huge inventories lying at the disposal of the developers in the festival seasons.
The survey carried out in the major cities like Delhi-NCR, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun was able to gather information from 250 property dealers, noted 40 builders/ developers and 20 divisions of housing financing.
A majority of the developers have complained that the inordinate delay in getting necessary approval from multiple regulations and authorities result in cost and times overruns.
The another factor reported was that in the absence of industry status apathy of banks in financing the real estate projects, the ASSOCHAM survey further said.