Has the global financial meltdown affected the sale of your flats or booking of commercial space? Most of the companies here are IT firms and this sector has been badly hit.
Fortunately for us most of the software companies here are captive. There has been steady expansion. Organic expansion is still happening as far as the commercial space is concerned.
How long do you think this recession will last?
In a city like Pune prices have already bottomed out. They will not fall further. With banks cutting interest rates and liquidity flowing back into the market the realestate sector will turn around in a year.
How badly has the sector been affected?
The effect, I would say, is mostly in the minds of the people. They want to own properties but are waiting for prices to drop further. It is the sentiment that needs to be corrected.
People will continue to buy houses, but purchasing a house as a means of investment will stop unless the government offers more incentives by way of taxes.
Now when you rent a flat you have to pay tax on that. Commercial rent too has service tax.
What role does corruption play in the industry?
No comment.
How badly does it affect your industry?
It just slows down business. Now with the Right to Information Act nobody does anything in-discretionary.
Also read: 'It is very hard to replace Bill Gates'
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