India’s real estate sector is set to grow rapidly over the next 4-5 years in the context of successive GDP growth, said Sarang Wadhawan, Vice Chairman and Managing Director, HDIL.
In an interview to ETRealty, he said the increase in the cost of labour and decrease in their quality is posing a major threat.
He said in the affordable housing category, people might still be waiting for the interest rates to fall further. Unlike investment options such as equities, gold or mutual funds, the quantum of money required in a property investment is far more.
Besides, in most cases it is a one-time investment for decades. So perhaps, people might be a bit hesitant in a weak economic scenario. Mumbai and Delhi have been the markets that have been largely impacted. However he sees glimpses of recovery.
Delay in project completions due to amendment in policies have also shaken up buyer confidence however, now with streamlined approvals in place there is renewed confidence in home buying.
Wadhawan said in today’s market scenario, he does not think properties are over-priced. Currently real estate sector is heavily regulated. There is a significant delay in getting approvals.
The government’s initiative to train 400 million labourers for the real estate sector is a welcome move, Wadhawan said.