Economic meltdown will hit realty sector hard

The deadly global financial slowdown will have a very deep impact on the realty sector in India, which is already fighting a desperate battle.

Realty sector watchers are of the view that the slowdown will carry a double edge impact to it. One, as big-ticket banks, financial institutions and companies are pruning their staff, the market will lose some of the possible buyers of new houses.

And, secondly, the affluent NRI community will have second thoughts about property purchases here in India.

According to an official of Assocham, it is most unlikely that companies in India will start hiring people in a big way in the next one year or so. It goes without saying that it will impact the realty sector and it won’t find many buyers for high-end apartments.

P K Jain, vice president of PNB Housing Finance Limited, feels that the ripple effect of the US financial crisis is going to hit the Indian market as well. “We were expecting good times for it during this season between Diwali and New Year. Now we are not so sure about that,” he says.

Source: EconomicTimes