The infotech industry continues to rubbish speculation about a downturn in their future prospects after all the spooky talk about a recession in the US. But all the babble has sparked fears that if the software industry goes through the skids, it will have a knock-on effect on real estate prices at home. The argument goes like this: the IT and IT-enabled services industry have been one of the biggest drivers of real estate values in the country over the past few years. Reports indicate that software companies are putting their property deals on hold. These are just a few straws in the wind, but some pundits who divine trends from such stray signals say real estate prices can soon head downward as well with one of the key props for the market gone.
They believe that there will be a sobering impact on both residential and commercial prices. A recent report by the Deutsche Bank says the IT/ITeS sectors have driven 80 per cent of the demand for office space in the country over the last three to four years. The report adds, "These IT and ITeS employees had started the residential boom in India in the late 1990s and accounted for 40 per cent of the demand for residential apartments in the top 15-20 cities in India.
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