Categorized | International

Housing Market in India Continues to Falter

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Residential real estate markets across the globe continue to struggle, particularly as fears of another global recession grow. India has joined the ranks of various world powers that are reporting a slowdown in overall housing sales.

The most recent reports indicate that housing prices dropped across the board in India, including in some of the country’s prime cities. As sales and prices drop in nearly every city, new construction in India has also grown sluggish.

The general decline in sales and values can be attributed to reduced buyer confidence. Buyer confidence has been one of leading causes of the housing slowdown around the globe, largely due in part to concerns with global debt. In the case of India, buyer confidence has declined as interest rates continue to rise and inflation grows at a rapid pace. Despite declines in housing prices, rising interest rates are making home ownership unaffordable for many prospective buyers.

Interest rates have been increased twelve times in the past year and a half in India. The rising interest rates not only impact the decision of buyers, but also the bottom line of construction companies and developers. Rising costs have made new construction unfeasible, and both groups are carefully evaluating their target markets.

There is no indication as to whether or not the residential real estate market will turn around in the next year. Many believe that international investors may take particular interest in India’s housing market, as price drops will make the country more affordable for those looking to move into India.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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