Welcome to Gaia! :: View User's Journal | Gaia Journals


View User's Journal

Report This Entry Subscribe to this Journal
shelby9good5 Journal shelby9good5 Personal Journal

Community Member
Property Prices Must Fall, Raghuram Rajan Tells Developers - NDTV
User Image - Blocked by "Display Image" Settings. Click to show.

RBI Governor Raghuram Rajan and State Bank of India chairperson Arundhati Bhattacharya at the second SBI Banking and Economic Conclave (PTI)

Reserve Bank Governor Raghuram Rajan on Thursday made a case for reduction in property prices given the high inventory of unsold flats across the country.

"If real estate developers, who are sitting on unsold stocks, start bringing down prices, that will be a big help to the sector because once there is a sense that the prices have stabilized more people will be willing to buy," Dr Rajan said. (Watch)

I thing we need the market to clear and with growing unsold stock we need to figure out ways to do it," he added.

The Governor said banks should explore ways to make home loans easier, but quickly added that property prices must fall before rates are brought lower.

"We don't want to create a situation where prices remain high at a level that demand may not pick up to the extent necessary," Dr Rajan said.

His 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 small corrections, but analysts say there's further scope for decline in property prices.

Analysts have also cited high interest rates as a big factor for the slump in property sales.

The RBI Governor was speaking with State Bank of India boss Arundhati Bhattacharya at an interactive session in Mumbai.


Manage Your Items
Other Stuff
Get GCash
Get Items
More Items
Where Everyone Hangs Out
Other Community Areas
Virtual Spaces
Fun Stuff
Gaia's Games
Play with GCash
Play with Platinum

Customize your own avatar now!

Join Now

Have an account? Login Now!