Categorized | International

Property Firms in India Face Difficult Times

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Thanks in part to a quickly improving job market and economy; India’s real estate market has prospered over the past few years. However, that prosperity may soon come to a halt for property firms in the country, as demand for real estate is falling due to increased interest rates and costs on mortgage loans.

Many real estate firms have seen their values cut nearly in half due to a massive decline in sales, and uncertainty regarding the overall global economy. Scandals have also had a negative impact on the values of these companies, as some, some have been accused of taking bribes to approve and administer housing loans.

The decline in housing sales leads experts to believe that the recent future looks terribly bleak for many real estate agencies in India, particularly as rates and overall costs continue to increase. Many potential homebuyers that were ready to make apply for a loan, and thus, purchase a house, have since backed out of the process. Many of these individuals and families are waiting for the rates and costs to fall back to previous levels before they commit to buying a home.

The real estate market in India has gotten so bad that in Mumbai, its prime real estate market, sales have hit 30-month lows. Analysts believe that the only way to ensure that things get better in the real estate market is to reduce the tremendously high prices to more realistic levels. The need to drop the prices is becoming apparent, as even the most high-end, luxury properties have gone unsold for months.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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