Fairval

Notes on Indian equities, sectors and economy

Real estate prices – 50% correction

Posted by fairval on September 29, 2008

AM hearing more and more evidence of a dramatic correction in real estate prices. In Noida, a prime property, has seen prices come dowm from Rs 6000 psft to Rs 3000 per sft. THis is a project from a large listed company.

In Mumbai, in commerial property, I have directly heard of 2 instances where price correction is a little more than 50%.

So I think another 3-6 months, and floodgates will open. Builders seem close to going belly-up. Full scale price correction may just be round the corner

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