Realty sector may benefit from sub-prime crisis

The Indian real estate sector is likely to benefit from the sub-prime crisis affecting the United States in the medium to long-term. But the negative impact of the crisis may remain in short-term, said international real estate consultants, Jones Lang LaSalle Meghraj, in its report on 'Impact of the US Sub-prime Crisis on the Indian Real Estate Market.'

Currently, the US contributes 40-45 per cent of the total IT/ITeS outsourcing and offshoring business in India and is the single largest market for India's IT/ITeS business.

The real estate sector's growth is fuelled by demand. In India, the demand is derived mainly through shift in global economic conditions. Thus any change in the real economy will have an impact on the physical real estate (construction or ready office space)