The Indian real estate sector is facing lot of problems in terms of credit crunch. Due to high interest rates, real estate developers are finding it tough to raise funds for the housing and other real estate projects. Due to paucity of funds, real estate developers are not been able to complete the ongoing projects in time and the buyers are getting frustrated. The representatives of the real estate sector had met the Finance Minister before the Budget was presented and urged for some incentives. But the Finance Minister has lot yet another opportunity to drive the consumer demand for real estate and turn the fortunes of the sector and in turn give a fillip to GDP growth in 2012-13.
While the Finance Minister said that the objective of the budget was to create conditions for growth and to focus on domestic demand, he gave the real estate sector, which could have aided him meet these objectives, a miss.
The real estate sector has a key role to play in the overall growth of the country. If the GDP is to grow around 7 percent, the growth of the real estate sector is very crucial. The housing sector has linkages to more than 250 ancillary industries and employs more than 10% of our workforce.
So by ignoring this sector the Finance Minister has failed to boost the economy in any big way.
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