Housing sector needs Rs 360K cr investment

News Posted - 2009-11-21

Over the next five years, the country needs 26.5 million additional housing units, investment requirements of over Rs 360,000 crore and re-housing of 62 million persons who live in urban slums, according to Renu Sud Karnad, Jt managing director, HDFC.
“In the last year alone, through one of the toughest periods in economic history, the real estate industry in India managed to grow at over 16 per cent y-o-y. As a contributor to GDP growth, current estimates place the real estate sector at 8.86 per cent of GDP. At the same time, over Rs 23,000 core is being proposed to be raised across 8-10 real estate IPOs within the next 6-12 months,” she said while launching RESSEX, a new index for the real estate sector.
“We have to seriously question ourselves about our commitment to housing. We are indeed faced with a series of great opportunities brilliantly disguised as impossible situations, but we should not give up,” she said.
Karnad said last year has shown us the importance of transparency, compliance and integrity in the business world. “The housing industry, in particular, which addresses the needs of millions of consumers, requires a greater degree of sophistica­tion in its reporting of accessible and value-adding information,” she said.
“In India, housing, if priced correctly has an enormous demand. Given the acute housing shortage, it is unlikely that there will be any saturation in the market for a long time to come,” she said.
“RESSEX will enable easier understanding the finer aspects of the dynamics of real estate trends,” said Pankaj Kapoor, MD of real estate research and analysis firm Liases Foras which developed the index.