Government's Anti-Consumer Policies Favor Developers

The Government of India under Dr. Manmohan Singh is not bent upon making the Real Estate market lucrative to Indian consumers but has vested interest in pampering the developers. In short, the Government lacks the will to curb Foreign money in Real Estate which our Developers are raising and once have comfortable cash position, begins their wave of arrogance towards the Indian consumer without any reduction in prices.

We had demanded the Government to ban or have a 10 year lock in for Foreign investment in Residential Real Estate, but they don't oblige. Here are some recent updates that proves our claim.

In January and February, FDI into India increased by 127% to Rs 27.5bn as against Rs 12.1bn in the same period last year. FDI in housing and real estate also increased to 6% of total FDI for these two months as against the average of 5.7% in FY09 (excluding March data).
One need not worry as even this major[attracting foreign money] will fail and Realty Developers will have to reduce the prices further by 10-15% from current levels.Why do we say so ? Realty Developers completely ignored locals and were pampering the NRIs between 2004 and 2007. In 2008, the NRI buyers crashed out. Now for short term, QIPs and Foreign Investors will come, however, this won't sustain for long as they need to SELL the properties they build and the only possiblity is to reduce further and SELL.