Expect a 20 per cent fall in realty price soon as the rising inflation will force realtors to sell properties to tide over the cash crunch. Many developers will be in a panic to find buyers at lower rates.
“Long-term demand is robust but short term prospects look bleak. Price correction will be more in the mass housing segment where cash crunch is a major issue,” said Ramashrya Yadav, CFO, Orbit Corporation. However, realty experts feel that the price reduction will happen only from September.
Number of properties available for purchase will also come down substantially.“Developers will face increasing problems for completing ongoing projects and launching new ones, resulting in reduction in available supply. Potential buyers will have less disposable income to buy property,” said Shobhit Agarwal, joint MD, Capital Markets, Jones Lang Lasalle Meghraj.