New Delhi: Residential property prices are expected to rise by mere 1 percent this year and 2 percent in next, according to recent poll of property experts conducted by Reuters.
Interestingly, consumer price inflation in the country is 3.15 percent which means that property prices will decline if the rise in price levels in the country is accounted for.
The respondents in the survey, which was conducted between August 13-27, said that the liquidity problems in the economy will take a toll of the real estate sector and check price rise in the coming months and in 2020.
The Reserve Bank of India has slashed the Repo Rate by 110 basis points in four consecutive rounds this year which has helped commercial banks to bring down their interest rate for loans including home loans. Even with this cut in interest rates, the scenario is not expected to improve much for the real estate sector.