Real estate stocks are battered the most in this free fall of sensex. With hardening interest rates and slump in demand due to high prices, sales are expected to go down in this sector.
This may also lead to small corrections or a big fall in the real estate prices depending on the situation that unfolds. if oil prices keep going high or inflation continues to be in double digits, RBI may hike the interest rates further tightening the liquidity.
Moreover if there is an increase in EMI default because of the hardening interest rates, we may also see some panic selling in the market. If the real estate prices stands out this crisis for a couple of years... we may say the real estate prices are REAL or else they are certainly NOT. Lets see how things unfold.
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real estate prices will fall?.. correction overdue in real estate impact of ineterst rates on real estate.real estate slow down