Indian retail realty prices cooling: Reliance
12 Aug, 2008

Indian retail real estate prices are softening and availability is rising as high interest rates crimp access to funds, slowing demand and forcing builders to sell, a senior Reliance Retail official said on Tuesday.

Retail firms are scaling back their expansion plans, and builders who had planned to hold on to properties, are selling space to tide over the cash crunch, Bijou Kurien, chief executive of Reliance Retail's Lifestyle unit, told media.

"Finding the right deal was more of a challenge six months back. Now there is some sense in the rate and a willingness to talk," he said." I think real estate prices will continue to fall for the next 3-12 months." Reliance Retail is a unit of India's most valuable firm Reliance Industries.

Raising funds in India has become difficult, with the main share index down a quarter in 2008 depressing share issues, while the central bank has raised its key lending rate to the highest in seven years to rein in inflation.

India's central bank expects the economy to grow about 8 percent in the fiscal year to the end of March, slowing from 9 percent or more over the past three years.
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  • One more of the NRI bears wanting to sell his property in US at the thick of recession for a few cents and then wanting to buy Poes Garden property for a song. Stop selling us your American dream gone bust story. Come to India and we will let u work in a shed! LOL!