City realty unorganised

An ‘industry’ status for the realty sector would ensure easier funding for projects

He believes in calling a spade, a spade. And this is also how people know M. Narsaiah, the chairman/managing director of Shanta Sriram Constructions.

He launched his maiden project — a duplex apartment — in 1995, and now the builder is sharing his views on the industry and its turbulent history.

“Banks those days used to have a hawkish approach in terms of lending. But now, there has been a sea change in the attitude as more and more people wish to have their own homes,” says Mr Narsaiah, adding that the margins on selling of per sft of land at the rate of `400 used to boil down to `100.

Under present conditions, in which the real estate sector in the city remains unorganised, he says, “Banks need to realise that the current rate of interest is high. They need to bring it down so that people, as well as developers, can avail loans at a good rate.”

He adds, “The Budget was a great chance to redo certain things that would have pumped up the spirits of the sector. The entire real estate sector had asked to be granted ‘industry status’, a move which would have guaranteed easy funding for projects but to our dismay, the demand went unheeded.”

He, however, hopes that the future outlook of the city’s real estate market remains positive as it is slowly, but steadily, emerging out of recession-linked woes.

The group, that has projects in key locations across the city, is also coming up with projects in Tarnaka, Padmarao Nagar and Gachibowli.

Banks need to realise that the current rate of interest is high. They need to bring it down

M. NARSAIAH