Real estate firms are not satisfied with the financial package announced by government to speed up economic growth. Terming it as 'disappointing', the realtors said that reality sector is under huge pressure due to costly credit and low demand following global financial crisis. However, they welcomed the duty cut on steel and cement as it would decrease construction cost and hence increase demand. The real estate companies demanded more measures to provide easy finance for housing.
 

Marg Limited, India’s leading Infrastructure and RealEstate development company, has received a contract from the Karnataka government.

The scope of order involves development of airport at Bijapur, Karnataka.

However, the company did not disclose the financial details of the deal.

Recently, the company laid foundation stone for the country’s first fishing harbour on a Public Private Partnership model, at Rajakamangalam Thurai in Kanyakumari district, Tamil Nadu. 

DLF Assets (DAL), promoted by K P Singh will raise USD 450 million from private equity investors by December for part payment to another promoter group firm DLF Ltd.

DLF Assets Ltd has been established to acquire commercial projects of DLF, the country's largest realty firm.

DAL owes Rs 4,804 crore to DLF as on September 30 and was targeting capital raising to the tune of USD 400–500 million. The DAL PE deal, in which JP Morgan and Texas Pacific will together put in USD 200 million, is likely to be signed in the next few days.

Goldman Sachs expressed concerns over the slowdown in Indian reality sector following global slowdown. It has stressed the need to cut reality prices by 30% to increase demand. However, it can affect the annual economic growth rate but the price reduction would increase affordability of people.

Top reality developers may cut property rates about 15 percent to boost demand in the market. National Real Estate Development Council (NAREDCO) has asked all developers including DLF and Unitech to revise housing project rates to deal with fall in the market following global slowdown.

Last week, Union Finance Minister, P Chidambaram had asked reality majors to cut property rates to increase sale of property.

Real estate companies are likely to slash prices to boost demand in reality business. It is to be noted that Union Finance minister, P Chidambaram recently asked industry to slash prices so that the desired targets of industrial growth can be achieved.

Realtors seem to get the message and are expected to decide on price slash within few days. Real estate sector is facing tough situation amid ongoing world economic crisis. Home Buyers have declined in number as banks are offering home loans at high rates, which are not affordable for Indian working and business class.