photo credit: World Economic Forum
Indian property prices must fall further before transactions climb again, the head of a firm with investment property interests has claimed.
Adi Godrej, chief of the Godrej group of businesses, said the country had already seen a correction in prices.
He made the comments while at the World Economic Forum India Economic Summit in Delhi, which ended yesterday.
The Godrej group’s interests include construction, electronic goods and office equipment besides real estate.
According to Bloomberg, he said demand for consumer goods in India is still “reasonable” despite a decline in the demand for things like housing prompted by an economic slowdown.
At the high-profile summit finance experts also said India needed a reform of its monetary system if it was to take advantage of the global cash crisis and become a bigger economic player.
Vikram Akula, chairman of SKS Microfinance, noted the vast majority of India’s poorer people still have no access to bank lending.
He said a way would have to be found to give poorer people access to borrowing if the economy was to realise its full potential.
India also has the opportunity to become a financial hub, said Stuart Popham of UK firm Clifford Chance, as it is a country in which foreigners are looking to invest.
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Although, price cut is need of the hour but realtors are reluctant to cut fearing massive cuts in future.. now it is only a question who blinks first
ishani
http://www.indianpropertyreview.com
The prices are expected to slash big time beyond March 2009 given the government is going out of term and the new government would certainly take a more rational liquidity management thus contributing to further troubles on the real estate front.
I agree, this pro rich govt, which is responsible for the establishment of various cartels will not return and new one will break the following cartels:
Cement
Steel
Telecom
Real-Estate
Airline (Brand new)