There has been an overall slowdown in real estate industry
and various industry players have been affected. Some factors responsible for
this slowdown can be increase in interest rates, slowdown in IT industry,
increase in property prices, and increase in interest rates loan rates because
of which many property buyers have stepped out of market. But somehow this
slowdown can bring happiness to those middle class buyers who have been eagerly
waiting for the property prices to come down. In major cities such as Delhi,
Mumbai, Bangalore, Chennai and Hyderabad real estate market has come down. Also
because of increase in cost of raw materials like steel, iron and building
material builders are facing difficulty of constructing property at agreed
prices.
As realty business in Bangalore has been hit by global
financial crisis because of this uncertain condition in Indian equity market
and property prices builders have come in formidable situation. The condition
is that approximately 400 flats or more are still vacant despite of
advertisements. And the situation is same with many top builders of country.
Many builders’ developers said they have faced a drop in new projects as
compared to last year because of which condition has become worse in the
market.
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