The promises bore fruit with the tabling of the national housing and habitat policy on July 29, 1998. But it failed to clarify on what approved housing projects meant. And even while according infrastructure status to the housing sector, the government failed to spell out the benefits of the same.

The sector waited eagerly for the repeal of the Urban Land Ceiling and Regulations Act (Ulcra). But in spite of the sincere efforts made by minister for urban affairs and employment, Ram Jethmalani, the ordinance proposed forthe repeal of the Act was scuttled by select parliamentarians who believed that Ulcra was the best safeguard against massive land acquisitions. And again at the fag end of 1998 the cabinet gave its approval to repeal the Ulcra by an ordinance.

The corporate sector, on the other hand, sprung a few surprises on the market. Cadbury India put its headquarters, Cadbury House -- a landmark building in south Mumbai -- on sale. ITC Hotels transferred its property for the five-star hotel at Andheri in Mumbai back to its parent for Rs 133 crore, the Mafatlals transferred about four floors at Mafatlal Centre to internal finance and trading companies for a whopping Rs 112 crore and the Leela Group dropped plans to build its five-star super deluxe hotel at Andheri. But it was Reliance Industries that made the largest investments with nearly Rs 208 crore invested in real estate.

Overall factors like the demand and supply situation as well as the sentiment moved in favour of the buyers. Even the interest rates arefavouring the buyers, with the housing finance rates falling by 2 per cent.

There is an increase in the supply situation with the new office location policy permitting new offices in residential, commercial and industrial zones and slump redevelopment schemes.

The relaxation of restrictions for the sale of mill land is another factor that is going to make available more land for development of both residential and commercial property. The Maharashtra government has given a further boost to the commercial segment by sanctioning the conversion of light industrial premises into office premises.

HDFC has initiated some steps to bail out a group of six builders in Mumbai alone as an increasing number of their construction projects are stuck for want of investors. It is estimated that about 20-25 per cent of the payments over the last year in the construction industry have been made by pledging assets due to a severe cash crunch.