MUMBAI:Monday the stock exchange goes down by 950 points made the real estate industry jittery and on edge.Its really a bad news for the property investors to know the way market is reacting these days and really they would be facing some more problems till it become stable atleast.
Pujit Aggrawal Developer from Orbit explains that sales has came to the grinding halt of commercial and residential sector, over the past three moths. He added “Property prices are about to fall by 30% in an year or next 18 month.”
Mr Aggrawal Added, The demand for commercial space has gone down because it was driven 50% by the financial institutions. If the markets contuniues to fall like this a huge corrections can be seen in the places like Thane, Jogeshwari and beyond will see huge corrections.In the past couple of months teh stock market has fallen down by 35% approx, said HDFC Chief Deepak Parekh. The rationale is that when the stock market is bullish, people are more comfortable buying property. Now that there is a hit, the real estate market is bound to slow down.
He further added, “Investors have withdrawn from the real estate market. There may not be an impact on prices in south Mumbai, but certainly in other cities like Gurgaon, Noida, Bangalore and Hyderabad.”
Real estate values are correcting accross india and hope fully it will stop the illogical land evaluation, said Chanakya Chakravarty, MD of Actis Advisors.But the stock market fall will hit the sentiments badly and investors will take the time to invest more in this market situation .
