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No demand for residential properties in India

In a report by Global Property Consultants CBRE South Asia, it is stated that the cost of the residential properties in India has witnessed a steady rise. But there is no increase in the demand curve for those properties across India.

The cost of the properties has increased because of several hikes in interest rate in housing finance, and the increasing cost of the construction material has also enhanced the escalating cost of properties in India.

While the year 2012 started on a positive note with the central bank reducing repo rates by 50 basis points for the first time in several months, the impact on demand did not stimulated with this decision.

However with repeated interest rate hikes, rising prices and prevailing economic conditions, the market saw a dip in sales in the last financial year.

This has led to an increased supply stock for real estate properties in the key markets of NCR (National Capital Region), Mumbai and Bangalore, leading to capital values remaining flat across various micro-markets.

The entire real estate market in India is still waiting for a better future.

 

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Source: Economic Times

2 Responses to “No demand for residential properties in India”

  1. keerthi says:

    Yes,your right last financial year is a back draw in real estate business but this year it is raising up as being in this field we sold many of our properties in Richmond Villas and still waiting for the most better sales for the remaining projects.

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