The real estate sector has been featuring on the Reserve Bank of India’s radar for a long time. The central bank has been concerned about inordinately high prices of properties, both commercial and residential and has been issuing diktats aimed at easing them.
Rising interest rates, increasing risk weights for banks lending to real estate and now the clamp down on real estate companies borrowing abroad, all these measures suggest that the real estate price climb will be arrested. Reports of a price ease are doing the rounds, especially in metro suburbs.
Does it mean that the gains from real estate investing would disappear and that investors with extensive exposure to property should wait for another surge to happen? Or is it just a simple correction, witnessed in most upward moving markets, a small recess before the next surge?
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