Property market and Gold were the top two investment options. Fall of gold prices affected the jewelers and those who had investment on gold. The experts now fear that the next to be hit will be the property market.
NEW DELHI: The fall of gold prices has affected the jewelers and the gold investors. Now the next will be property market, the industry experts express their fear.
The unpredicted and unforeseen fall of gold prices has affected not only the gold jewelers but also those who had investments on gold. Rising prices of gold had wooed the investors.
If the gold prices in 2001 were around Rs.400 per gram, it has gone to Rs.3000 per gram in the beginning of 2013. It means that the gold prices have gone up by 1500 percentages within a span of 12 years. However within a week the prices fell by around Rs.1000 per gram.
In the same way the property prices have been shooting up in all the cities and villages. Along with the fall of gold prices, there can be a fall of property prices.
Though the property market denies the chances of a price correction, the possibilities are not to be overlooked.
The realty experts say that the fall of property prices will never happen. They place before arguments like lessening of land parcels, growing population, etc.
As long as land remains a scarce raw material in cities, there is no chance for the property prices to fall. While the demand is higher, the supply is lower. This too will sustain the prices.
Whatsoever be their arguments, the reality is not what the experts say. According to a recent report there are nearly 1.4 lakh unsold properties in Delhi NCR alone. The number of unsold properties in Mumbai and other cities is also growing.
Many of the developers are busy divesting their things off to cut short their debts. Yet, they say that the property market is not hit. Majority of them now offer discounts and other freebies to attract the takers for their unsold inventories.
Whether the property prices are falling or not, the takers are able to attain homes at comparatively lower rates as they are given freebies and discounts by the builders. Though builders say that they are only festival offers, they do have an impact in the property market.