Property Developers unite to Face Market Crisis
Nov 17th, 2008 by shop-universal-best-buy
Property Developers unite to Face Market Crisis
Indian real estate sector is becoming more organised, thanks to the market crisis. The Indian property segment is witnessing tough times and this is when the private property builders have shown some sort of consolidated efforts to keep market buoyant.
Private property builders in India are raised an alarm about the recent hike in the repo rates by the Reserve Bank of India (RBI). This hike means a direct hike in the lending rates also. Hence most banks like the ICICI and HDFC hiked their rates by 75 basis points. Overall, this is the third consecutive rate hike this year. Home loans have become expensive by 60% in the last two years as compared to the entire decade.
Builders group DLF said that suck hikes will eat into their profits. Another property builder Omaxe Ltd. has proclaimed that such moves will drive away home buyers from the market. The property segment is already witnessing dwindling transactions and such moves by the RBI would mean still lesser property buyers. It is getting difficult to buy property in India. Another big property developer Parsvnath has hinted at hiked prices for all its properties. The Managing Director - Pradeep Jain - has said that consecutive hike in the home loan rates and high constructions rates have forced them to take such steps. He has denied any further brainstorming on this decision.
These sharp reactions should be a pointer to the RBI and the Ministry of Finance to re-think about the relaxations and concessions for the construction industry. The global economy has been ht by the sub-prime crisis. This has cast a dent in the Indian property segment too. Thus, the industry bodies and the Ministry of Finance are being expected for some help.
For more details on Buy Properties in India, log on to magicbricks.com
George Gonigal provides you the best and latest information on Chennai Real Estate Builders , If you want to Rent Properties in India, he suggests you log on to magicbricks.com
Property Developers unite to Face Market Crisis / Author: George Gonigal
