Property Prices set to fall

Are you one of those who had been looking to buy land or flat in you city, but could not but due to extremely high prices of property in your area. Well there is some good news for you as property prices may fall because of bribes for loans scandal involving many banks and real estate companies have hit the Indian markets.

This scam is mainly associated with reality companies and now as finance ministry and reserve bank of India will look to tighten the grip on loans given to such real estate companies, liquidity for the sector will dry up as bankers will not sanction fresh loans, forcing real estate companies to cut prices of real estate to improve the cash position of such companies, which in turn will help the buyers who have been holding cash and were looking to buy property but could not due to high prices.

While property prices may not fall immediately but as banks will turn more cautious in giving fresh loans to builders or real estate companies its effect on real estate prices will be seen over a medium time frame. It’s no coincidence that real estate index has been down almost 10 percent and many real estate companies are down between 20 to 30 percent since this scam has come out in public. So it is better to wait for a while on account of this development if one is planning his or her investment in property or real estate.

0 comments… add one

Leave a Comment


Related pages


types of dividend policy theoryinelastic examplesfinal goods vs intermediate goodssubvention meaningdemocratic style of management advantages and disadvantagesdisadvantages of comparative advantage theoryautocratic leadershipperfect competition in economics definitioncost concept in accountingunearned revenue on balance sheetwhat is the difference between durable and nondurable goodswhat is the difference between accounts receivable and accounts payablemeaning of demand depositsmerits of capitalismadvantages and disadvantages of advertisementsdividend investopediafinancial derivatives pptaccounting cost conceptwhat are the differences between revenue expenditures and capital expendituresfictitious asset meaningpositives of urbanizationadvantages and disadvantages of earned value analysiswhat is the full form of cpijunk bonds advantages and disadvantagesadvantage of decentralizationdisadvantages of comparative advantage theoryadvantages of paybackexamples of inferior goods and normal goodsdifference between implicit cost and opportunity costwhat are characteristics of a traditional economywhat is derivative marketenvironmental pollution advantages and disadvantagesoligopoly and its featuresmerits of industrialisationlifo disadvantageswhat is a vertical mergerthe merits and demerits of internetmateriality conventionwhat is revenue expendituresunearned rentconvertible and non convertible preference sharesdisadvantages of conglomerate integrationadvantage of jitadvantages of specialisationdiscuss privatizationmixed economy socialismprepaid wages journal entryadvantages of planned economybearer certificate of depositexamples of complementary goods in economicsjournal entry prepaid expensedefinition of profitability ratiocapitalism weaknessesfeatures of debenturesdefine draweeexample of a conglomerate mergerunearned revenue balance sheetcontingent liabilities examplescash reserve ratio and statutory liquidity ratiodefine unitary elastic demandwhat is the difference between debtor and creditordefine proprietorswhat is cost concept in accountingprivatisation definedefine job costingformula for operating leveragecrr full formunearned rent revenue balance sheetadvantages and disadvantages of environmental auditdifference between cash credit and overdraftglobalization merits and demeritsglobalisation advantages and disadvantagesintermediate goods definition economicsmarginal costing accountingsemi durable goods exampleswhat is fii and dii in share marketcharacteristics of capitalist economylet's learn punjabiproprietorship ratio