Build Up 2008: A Somber Outlook for Indian Real Estate
Conference Begins on a Low Note in Bangalore
Tuesday marked the commencement of Build Up 2008, a two-day real estate conference in Bangalore, against the backdrop of the global financial crisis. Notably absent were Union Urban Development Minister S Jaipal Reddy and CM B S Yeddyurappa, who were scheduled to be among the key speakers.
Key Takeaways from Prominent Speakers
Impact of Global Slowdown
- Kumar Gera, Chairman of the Confederation of Real Estate Developers Association of India, highlighted the tangible effects of the global slowdown on Indian real estate, citing a 30% drop in new projects compared to the same period last year.
- Gera, however, expressed optimism that pent-up demand would resurface once markets stabilize.
Market Stabilization and Profit Margins
- Irfan Razack, CMD of Prestige Estates, predicted stabilization of prices in the primary market, cautioning that profits would not match previous levels.
Future Outlook for Land Prices
- J C Sharma, MD of Sobha Developers, suggested that forward-looking expectations include a softening in land prices.
The Road Ahead for Indian Real Estate
As the conference progresses, all eyes are on the strategies that Indian real estate developers will adopt to navigate the challenging landscape ahead.