Real Estate Market will continue to Remain Sluggish in June Quarter

indian real estateThe negative impact of the holdups in approvals, high interest rates and sky rocketing construction prices have resulted in slowdown in real estate market of India. The realty sector remained slow till this March and is predicted to remain sluggish till the June quarter. The developers may have to cut down the property prices in order bring back the demands for residences and offices.According to a report, new investments in the real estate sector of India have been dipped to Rs. 42,000 from Rs.92, 600 that is it is dropped by 55%. The downfall in the economic growth has even affected the rental demand. There is an anticipation of increase in the demand for office spaces in the April- June Quarter.In comparison to countries like China and Malaysia, our country did not succeed much in attracting foreign investments therefore the developers are likely to face funding problem for commercial spaces. Even the value of rupee has dropped by 6.27% against US Dollars; hence foreign investors are watchful about investing in Indian properties as they are not guaranteed with lucrative returns.Even banks are careful in providing loan due to the strict lending norms by the Reserve Bank of India (RBI). The bank is confining the use of bad debt for land acquisition. As customary financial services are not backing the developers, they are opting for non-financial sources that provide them with short term and private equity funds.The developers as well as the buyers are waiting for the economic condition to get stable for investing as the present market condition is not favorable.With respect to Maharashtra real estate, Mumbai realty market will remain controlled   in the first half of the financial year of 2014. The second half will witness lower interest rates and economic recovery.займ на карту без отказов круглосуточновзять кредит онлайн

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