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RBI credit policy: Impact on real estate=>opinions
Posted: October 27th, 2009, 12:27 pm
by plotcrazy
Friends
THought of starting a new discussion topic on the subject mentioned above .
The headline says" RBI leaves key rates unchanged"
Article link below
http://timesofindia.indiatimes.com/busi ... 167578.cms
Any impact of this on real estate sector?.Opinions needed
THanks in advance
PC
Re: RBI credit policy: Impact on real estate=>opinions
Posted: October 29th, 2009, 2:44 pm
by msn1270
RBI has already alerted that, there is an urgent need of correction in the residential and commercial Real estate prices. So this is a clear signal that RBI is going to raise the Interest rates soon by December or before the 2010 budget.
So we can expect a second round of price correction in the real estate market.
also this time RBI may not allow the loan restructuring by banks to the deceased builders/developers, which means real estate market will come under severe pressure as the demand will again goes down and all the existing loan amount EMI also goes up drastically this time.
RBI is more worried about the rising Inflation rate and it is expected to reach 5% before March 2010. So RBI definitely work on restricting the liquidity into the market.
For stock market it may not affect, due to depreciation dollar value, majority of the foreign investors are flooding their dollars into indian market. so it may sustain for short period.