riathareja

Well there are many factors which affect the Indian real estate sector. These factors lead to various ups and downs in the sector.As per me the Indian real estate sector is in its upswing and is expected to grow more.

Prices of residential property in India would only begin to fall in a fast flourishing economy with an increase in supply.Property prices will take a slip only if pushed by increased supply and not mere monetary policies.The Reserve Bank of India (RBI) raised interest rates five times since March 2006. The authority has also lifted banks’ reserve requirements to curb rising inflation and credit growth.This created a need for commercial banks to raise lending rates including those on home loans by more than 200 basis points.

Another factor affecting Indian property market is increasing interest rate on home loans However, growth in home loans may slow to 17-20 per cent in the current fiscal, as per the data showcased by the Associated Chambers of Commerce and Industry.But nothing is certain.There are various more factors affecting the real estate sector. Keeping them in mind one can decide whether to invest or not.