Reserve Bank Governor Raghuram Rajan on Thursday said that property
prices should fall given the high inventory levels across the country.
Developers should bring down house prices else the realty sector will
not come out of doldrums, he added.
Dr Rajan's comments come at a time when the realty sector is struggling with low demand and rising inventory of unsold flats. Property prices in some cities have witnessed some correction, but analysts say there's further scope for decline in property prices.
Dr Rajan also said that there is a case for frontloading of interest rate cuts by banks. High interest rates have been cited by analysts as a big factor for the slump in property sales.
The RBI Governor was interacting with State Bank of India boss Arundhati Bhattacharya at a banking conclave in Mumbai.
Dr Rajan's comments come at a time when the realty sector is struggling with low demand and rising inventory of unsold flats. Property prices in some cities have witnessed some correction, but analysts say there's further scope for decline in property prices.
Dr Rajan also said that there is a case for frontloading of interest rate cuts by banks. High interest rates have been cited by analysts as a big factor for the slump in property sales.
The RBI Governor was interacting with State Bank of India boss Arundhati Bhattacharya at a banking conclave in Mumbai.
No comments:
Post a Comment