Industry experts say that realty market is unlikely to face a collapse. The speculations over the stability of property market aroused when the gold prices fall.
Falling Gold prices have raised questions among those who have invested in the property market. However the experts say that realty market is unlikely to face a collapse.
The falling of gold prices has attracted many people to gold market. Now the investors as well as buyers are crowding around the jewelry shops. The situation is visible across the world. Once the prices have fallen, people feel it as the right time to grab a piece of this valuable metal.
How does this affect realty market? The question is answered by the experts. They say that this will not affect the realty market in any way. They continue that so long as the land is becoming a scarce raw material for construction, there will be no fall of property prices.
Besides the land prices, cost of production also is getting higher as the labor cost and other materials like cement, sand and others. All this makes sure that there will be no fall of property prices round the corner.
Unlike gold market, realty market is more stable. While gold can be avoided, houses can never be avoided. In the coming decades the demand for housing units will be more and there will be scarcity of housing units.
Despite the assurance of property experts, the investors are looking at the property market doubtfully now. They fear that it too will collapse. According to some recent reports there are over a lakh of unsold properties in the NCR alone.
The developers have not found takers for their unsold inventories. While buyers’ sentiments are hurt by the prices, the builders are to cut short the prices.
Some of the developers have started offering freebies and other sorts of discounts. Though these discounts are offered to woo the takers, they do bring the property prices down.
