Mumbai: Supply and demand of properties are the most affecting factors for inconsistent movement in price of real estate in India. Recently gold, the biggest investment asset in India has experienced major fall of the price in 30 years. The recent downfall of gold is flustering people over their real estate investments with the question; will real estate also suffer from the price fall or not?The recent report of Knight Frank, a property consultant group states that around 1.4 lakh housing units went unsold due to the less customer demand in the National Capital region (NCR) and same is the situation across the India. The demand of the property in any region depends on the employment and income factors of the people. These factors have not changed so far but the prices of the properties are increasing exponentially; though it has been stated that the price hike is the result of increased construction costs.In the case of gold, demand mostly depends on the consumers but in real estate demand drivers are different compared to that of gold. The recent research has shown that the real estate price and the gold price are in correlation with each other around the world. But the situation can’t be predicted in the same way for the Indian market.Real estate market may suffer from the fall as the new supply is increasing with time and the absorption of the properties is slashing. If the case remains same then the near future will observe the sudden fall of the property prices as the result of a sluggish real estate market.Sudden fall in the gold market has prompted people to invest their money in gold instead of real estate and some even selling their properties to invest in the gold
