Realty market to remain subdued in second half

August 11th, 2008 - 6:22 pm ICT by IANS  

New Delhi, Aug 11 (IANS) Property market in India will remain subdued in the second half of this year as developers are reluctant to lower prices to meet buyers’ expectations, a report by real estate-focused consultancy firm CB Richard Ellis’ released Monday. “Like most property markets around the world, Asian markets have been affected by slowing economic growth and unsettled capital markets,” the report said

“A cautious attitude has become increasingly prevalent as many investors expect the ripple effect of the global credit crunch to continue unfolding in Asia,” said Anshuman Magazine, chairman and managing director of CB Richard Ellis, South Asia.

“In India, the investment market remained subdued. Developers’ profitability was also impacted by rising construction costs, escalating interest rates and tighter lending measures,” Magazine added.

Direct commercial property transactions in Asia were up moderately in the first half of 2008, as compared to the corresponding period last year, the report said.

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