Real estate prices will keep on increasing, until......

says KP Singh, Chairman, DLF, who has been conferred with Padma Bhushan, the highest civilian honor in India

The growth in India takes place to 8-9% gross domestic product (GDP) which personally I believe will happen. Some people it will be at 6-7%, I would say it maybe 8-9% or more but if not this year, it will continue growing because of the fine government. There is highly pro-development government.

Our GDP will increase and the moment GDP increases, demand is going to increase of real estate product.

But the question is are we taking sufficient measures in the urban development scenario.
Both at the State and at the Center level.
To bring major reforms in this sector
by changing our archaic town planning regulation,
changing the land acquisition laws,
bringing around including stamp duties, and
bringing transparency.

All this will lead to an artificial scarcity created by putting a ceiling on floor area ratio (FAR or FSI).
I would say
why a ceiling
and why not allow 500-600 as here in Delhi at some places its 200.
So an attitude change requires to take place then only this supply will increase.
Till the time it increases real estate prices will keep on increasing.
I do not believe they will go down.

To read more, please, visit CNBC-TV18

Related Stories:

1) Wednesday, January 27, 2010
Padma Bhushan Kushal Pal Singh aka KP Singh, Chairman, DLF Limited, says:

2) Sunday, January 31, 2010
Rising real estate prices - RBI expresses concern

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