Construction industry picks up pace

It looks that sunny days are here again for the construction industry as trade has started slowly picking up pace in Tirupur knitwear cluster and cash gradually flowing into the hands of entrepreneurs in apparel and ancillary sectors after a brief period of lull in industrial activities owing to recession.
Individual houses
According to K. Shanmugaraj, General Council member, Builders Association of India, demands for individual residences have started showing an upward trend from the beginning of this financial year.
“Cut in lending rates by recognised financial institutions has also acted as a catalyst to make people come out yet again to invest in properties unlike about four months ago when there was severe shortage of cash reserves among population,” he added.
The lowering of interest rates on bank loans, according to him, has even changed the consumer spending habits and prompted even the industry people to go for infrastructure expansion in their respective units.
With the cascading effect of economic recession yet to completely move away from the cluster, experts feel that negotiation of rates will play a great role in fetching good prices from sellers and buyers points of view while trading properties in and around Tirupur city.
“The better you are at bargaining, the more money you are going to make or save,” Mr. Shanmugaraj pointed out.
Industry sources cautions that while negotiating for better prices, one should be realistic with what he/she has been asking for. “This will avoid losing opportunities to get attractive selling or buying prices,” sources added.
M. Nataraj, promoter, Sree Balaji Constructions, tells that the time is now ripe for investment as the property development rates which nosedived about six months ago are yet to go high.
“Presently, construction rate of individual houses hovers still at an attractive Rs. 1,750 per sq ft as against Rs. 2,500 sq ft a few months ago,” he said.
Thanks to : Hindu