Mumbai: Indian real estate sector, which helps in the country’s economic upsurge, is facing difficult times as the high interest rates push up the cost of home loans. Successive hike in the interest rates have made the buyers delay their purchase in hope of a fall in the interest rates. This situation has led to a knock off on the country’s top property firms like DB Realty, Unitech and DLF.
Stcks of these firms have already hit year low this month. Also the realty index in the BSE, (Bombay Stock Exchange) have halved in terms of value from the figure in the last year and also some other firms have seen their share price plunge after the news of loans for bribe scandal which emerged in last October. According to the property analysts the situation is not quite rosy for the property firms as another hike is expected before the end of the year in fuel, labor costs and raw material costs. According to Mr. N Sridhar, group director, DB Realty, rising interest rates, input costs and delayed approvals have resulted in a slowdown in this sector. According to Mr. Pramod, Ambit Capital, developers will have to start reducing the unrealistically high prices to boost the sales again.
Stcks of these firms have already hit year low this month. Also the realty index in the BSE, (Bombay Stock Exchange) have halved in terms of value from the figure in the last year and also some other firms have seen their share price plunge after the news of loans for bribe scandal which emerged in last October. According to the property analysts the situation is not quite rosy for the property firms as another hike is expected before the end of the year in fuel, labor costs and raw material costs. According to Mr. N Sridhar, group director, DB Realty, rising interest rates, input costs and delayed approvals have resulted in a slowdown in this sector. According to Mr. Pramod, Ambit Capital, developers will have to start reducing the unrealistically high prices to boost the sales again.
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