Diwali is an auspicious time for people to buy property. But this year rising interest rates, unjustifiably high real estate prices, rising inflation, the stock market crash, a slowdown in the economy, salary cuts, lay-offs, the global credit crunch, and a general fear of worse financial times to follow have hurt India's realty sector like never before.
Home-loan interest rates have skyrocketed and people are tightening their purse strings to ride the financial tsunami that has reached Indian shores.
So what is happening in the sector? Should you buy a house now or wait? Just when would real estate prices fall to reasonable levels?
Home-loan interest rates have skyrocketed and people are tightening their purse strings to ride the financial tsunami that has reached Indian shores.
So what is happening in the sector? Should you buy a house now or wait? Just when would real estate prices fall to reasonable levels?
The real estate sector, say industry sources, has been witnessing a major slump in business since quite a while now, but builders with deep pockets have managed to hold off the challenge till now. Having overshot their budgets due to rising costs of construction material led to prices of apartments rising, but with potential buyers having vanished and lenders breathing down the builders' necks to get back their money, the Indian real estate sector is headed for a BIG downturn.
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