According to an industry survey, fresh investment plans in the real estate segment have taken a plunge of about 82 per cent between the first and the third quarter of the current financial year showing a slowdown in demand in residential and commercial sectors. Investments in the real estate sector declined from Rs 1,15,326 crore in the first quarter to Rs 36,400 crore in the second quarter thanks to tightening of the monetary policy. This resulted in high interest rates and fall in demand. With announcement of policy actions and lowering of the key rates by the Reserve Bank of India (RBI), investment may revive in the realty sector. “Even though real estate sector investment plans have dried up considerably, the policy actions announced by the government and the RBI are likely to act positively in reviving the demand and address the funding problems of real estate players,” Assocham President, Mr. Sajjan Jindal said.

Popularity: 1% [?]