June 21, 2009

Boost required by Indian Real state companies

In current melt down no economy has been immune to effects of slowdowns across Industries, even depleting or at best stagnant employment opportunities and betterment has resulted in either cut on personal and family expenditures or postponement of many necessary expenditure, again putting pressure on companies involved in offering products or services. The vicious circle continues as poor sales poor profits and subsequently poor benefits to employee in form of incentive and salary hikes. So the effect of recession comes in full form leaving population with lesser purchasing power.

Government and companies are doing their best to boost confidence in masses for prosperous tomorrow. Many relaxations, waivers and grants etc are being offered to various industries to cope up with decreasing demands and help them improve their product offering. Companies too are trying their bit in offering many innovative discounts and value preposition to its customer to keep the demand in market.

I believe if government is concentrating on infrastructural development to generate demand from basic sectors and then capitalise on the upward mood of masses and develop service industries in second phase to counter present recession. I am sure this tough will not last longer.

I feel government should give some benefits and rebates to house owners and offer tax relief to first time house buyers in India. More and more people will be attracted to buy house, even couple should be given relaxations and tax benefits or even credit free loan to buy house. Government can put some conditions to hold that property for 5-7 years to stop sale and purchase business to take benefits of these relaxations for house buyers. Even people taking home loan should be asked to hold that property for 5-7 year or till the EMI of loan are being paid these property should be made non transferable.

This will help realtors to sell more houses in current time of recession and companies can use this to increase demand. Not only housing companies many other related industries like cement, iron, plywood, home décor etc will see the rise in demand and an environment of prosperity can be triggered.

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