Kerala Builders’ Forum buoyant

KOCHI: Despite the global financial meltdown affecting the real estate sector in the State, Kerala Builders’ Forum, representing the interests of the real estate business in the State, has exuded confidence as it plans to conduct the Kerala Property Expo 2008 at the Jawaharlal Nehru International Stadium between December 19 and 21.

“Property investments in Kerala are safe and sound,” said George E. George, chairman of the forum here on Wednesday. He said that despite the global crisis in the financial market and the general squeeze in the money market, investments in property were safe.

There are several factors that make investments in property safe in Kerala. The shake-up witnessed in various parts of the country as fallouts of the U.S. crisis will have limited impact on Kerala, say KBF leaders.

The Kerala realty market is dominated by the real buyer or the end-user. This means, in general, there is little of speculation involved in property transactions. This has resulted in consistent demand for property in Kerala unlike the recession seen in other major development centres in the country, said Mr. George.

The value of realty has risen consistently in Kerala around 35 per cent a year. This has been happening over the last decade. The building industry sees no fluctuations in the coming years too.

KBF leaders point to the crisis-like situation in 1996 when property price remained stable in Kerala when it crashed in other cities in India.

Source: The Hindu Online