Real estate prices to fall by year endReal estate prices to fall by year end
Apnaloan.com Research Bureau
18 Mar 2008
Industry experts say that realty prices will slump by 20-25 per cent in the next 6-8 months if the volatility in the stock market continues.
According to analysts, the stock market and the real estate industry is inter-linked.
In 1994, when the Sensex touched a high of 4,634.85 points, the real estate prices shot up. In 1997, the stock market witnessed a fall and the realty prices spiraled down. The prices saw an upward trend since 2003 when the Sensex began rising. Since then, the realty prices have reportedly gone up by almost 300 per cent.
If that's not much of a signal, Stocks of real estate companies have fallen 25-35 per cent in February 2008 when Sensex dropped almost 18 per cent.
The share price of DLF dropped to Rs. 602 from Rs. 1,225 in January 2008 whereas companies such as Omaxe and Puravankara are trading below offer prices.