Indian realty needs more props, says consultant

More measures are needed to revive the Indian realty sector, feels consultant Jones Lang LaSalle Meghraj.

In 2008, the Indian real estate sector took an unprecedented body-blow, said Anuj Puri, Chairman & Country Head, Jones Lang LaSalle Meghraj.

There is still a huge demand for residential and commercial properties in many parts of the country, but improper pricing and a faulty product mix were major stumbling blocks, Puri added.

The recent measures taken by the RBI will need to couple with lowered property prices and further injections of liquidity to effect any significant changes. Until then, domestic demand is likely to sink even further, and international interest will remain at cautious levels before the situation gets better. There has already been an overall drop of demand to the tune of between 45-50%.

The firm expect these figures to reflect a more positive scenario in 2009, at least with respect to residential real estate. Unrealistic pricing has been the bane of the Indian realty marketplace.

The fallout of the ongoing financial crunch and a justified watch-and wait stance by homebuyers will set some badly needed market adjustments in motion between January and March, 2009.