This refers to the report "Raining discounts for property buyers this season" (October 6). Although there is a marked improvement in the global economic situation, the inference that the expansion in the real estate business is related to this is incorrect. The global economic slowdown did have an adverse impact on real estate, given the rising cost of construction material. Additionally, consumer sentiment made real estate a dead investment without immediate revenue gains. But market movement has restored consumer confidence in investing in long-term capital. Buyers either anticipate higher revenue in the form of rent or speedier self-occupation. Builders, in turn, wish to dispose of idle stock by offering discounts in the festive season.
Moreover, some buildings were partially completed when the real estate sector was down and have depreciated in value, compelling both buyers and builders to speed up their completion. Fresh investors also wish to take advantage of discounts. Thus, the current expansion in real estate is more panic-driven than a planned.
C Gopinath Nair Bangalore
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