Buffeted by rising interest rates that has seen home loan EMIs soaring, high raw material costs and negative sentiments, property sales have dropped significantly over the last six months, said Brotin Banerjee, managing director and CEO, Tata Housing Development, the realty arm of Tata Group.
"It is largely due to lack of interest among end-users as high prices have deterred a large number of buyers. This, coupled with interest rate hikes, has further alienated buyers," Banerjee told Hindustan Times.
There may, still be speculative investment happening in the sector, although the robustness is missing, Banerjee said, referring to the macro environment in the real estate market.
Tata Housing Development, however, has bucked the industry trend riding on high sales, which have been nearly doubling the last three years. “Given our track record in delivering projects coupled with the Tata brand, our company has recorded an annual growth of around 100% for the last three years,” he said.
The company has chalked out plans to invest Rs 2,000 crore in various real estate projects in the current fiscal year. “We will invest Rs 1,000 crore for projects across the country, while the remaining Rs 1,000 crore will be invested in our luxury residential project at Gurgaon,” he said.