Indian property developers must change their outlook and start to lower property prices if the current market slump is to be eased, experts have said.
The Business Standard reports residential real estate demand has dropped by 40 per cent in the last nine months.
This has led to some experts suggesting only a fall in prices will tempt buyers back into the market.
India is currently experiencing a significant fall in transactions after three years of furious real estate sales.
Anuj Puri, chairman and country head of property consultancy Jones Lang LaSalle Meghra, was quoted by the paper.
He said:
“Developers must now be ready to lower their selling prices in order to revive demand. Once this happens, we will see a definite upswing in residential real estate sales again.”
Interest rates have recently increased in India, with officials also battling rising inflation.
Palaniappan Chidambaram, India’s finance minister, said on Thursday that India’s financial markets would feel some of the impact from the upheaval in global markets.
According to Reuters, he also said the authorities were prepared to counter any tightening of cash conditions.
The Reserve Bank of India (RBI) has also said it is prepared to increase banks’ access to funding due to the current world markets wobble.
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