Tuesday, May 6, 2008

Party time for consumers as southern India cools

After growing at a fast and furious pace over the past few years, the Real estate sector in southern India is cooling down. This has been caused mainly by a slowdown of the IT sector that impacts the region in more ways than one. Besides, rising home loan interest rates, climbing input rates and a general consumer reaction to the escalating cost of properties have begun to take a toll on realty in this part of the country. In some areas like Whitefield in Bangalore and OMR in Chennai, there has been an oversupply of highly priced properties, creating some sort of a glut. Further, the builders’ community has been affected by the tightening of the credit norms as well as the negative sentiments in the money and stock Markets.

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