More woes for realty

NEW DELHI: The terror attack on Mumbai will further compound the problems for the real estate sector, which is already reeling under pressure, because of rise in interest rates and slowdown in the economy, said experts. However, in the medium-to-long term, the impact will be marginal, provided the government takes concrete measures to avoid recurrence of such incidence in the future.
The attack has affected the plans of companies to open offices in Mumbai in the immediate future, said Anshuman Magazine, MD (South Asia) of global realty consultancy firm CB Richard Ellis.The incidence has made many foreign visitors to cancel their programmes for India, he added.
Magazine added that the general impression ��� that the city has enough resilience to absorb any setback ��� will not help it regain the old status among the business communities this time. Magazine said though such incidence had happened in other global cities, they have not lost their attractiveness as they provide huge benefits to businesses.
To instill confidence among the investors and businessmen, their governments took measures, which yielded results, added Sanjay Verma, MD of Cushman and Wakefiled. Similar steps should be taken by the government here also, he said. Magazine said a presence in Mumbai provides additional advantages to a company. But this development forces them to have offices in other cities. But, law and order plays an important role in this matter. Such happenings in the city increase the risk perception, which would force the companies to look for alternative safer destination.
The government should just not depend on the resilience of the city for returning to normalcy. It should act now to instill confidence amongst the people. In fact, Magazine added, the Mumbai incident has not just affected the city only but it has affected the image of the whole country.