CONFERENCE ON REAL ESTATE - Lack of transparency - Part - 9

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Lack of transparency Part 9 CONFERENCE ON REAL ESTATE

Transcript of CONFERENCE ON REAL ESTATE - Lack of transparency - Part - 9

Page 1: CONFERENCE ON REAL ESTATE - Lack of transparency - Part - 9

Lack of transparency

Part 9

CONFERENCE ON REAL ESTATE

Page 2: CONFERENCE ON REAL ESTATE - Lack of transparency - Part - 9

Lack of transparency

This also hampers the Indian real estate sector. The Indian Real Estate Sector is highly fragmented with the disorganized segment comprising of the small builders and contractors accounting for a majority of the housing units constructed.

As a result, there is a lesser degree of transparency in dealings or sharing of data across players which act as a deterrent to foreign investors looking to invest in Indian realty.

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Lack of transparency

An independent body appraising prices of lands as per international standard is needed in India to bring in the much needed transparency.

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Raising funds

It is the most difficult challenge for the real estate projects. Indian real estate has suffered from plummeting inflow of funds in the past year. The inflow has been hurt by Eurozone crisis and low performing global economy. While foreign direct investment (FDI) in real estate was about Rs 1,58,490 million in present value in 2009-10, it has come down to Rs 39,474 million in 2011-12.

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Raising funds

It has led to the unreal price appreciation in Indian real estate market. Overpricing has been deterring customers from buying homes and as a result there exist a huge number of unsold units. Foreign Private Equity funds have been blamed for this to a certain extent as they look for a high return in a short period of time.

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