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WITH SENSEX DROPPING, BIG FALL EXPECTED IN PROPERTY PRICES

Sensex-1Homebuyers might just find a reason to smile now as experts say that the slowdown in the market might lead to the falling of property prices too. Experts say that if the volatility in the stock market continues, there is a high probability that property prices could fall by 20-25 per cent in the next 6-8 months. The bearish trend has already started to affect real estate prices in Mumbai as well as Delhi. Expert predictions on this might be realistic because in the year 1997, when the market entered a bearish phase, the realty sector took a hit. Its not just the Sensex but other indicators too. Stocks of realty companies have fallen 25-35% in the past month, as the Sensex shed 18%. Companies like Omaxe, Puravankara and Kolte Patil Developers, who recently entered the market through IPOs, are trading below offer prices. Apart from the market slowdown, lack of demand and over-supply might also lead to realty price correction. Bureau Report – NMTV

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