Interest rates are going up so should Property Prices be coming down? Like the economists say all things being equal... What is your view and how should one figure out the impact?

Balaji

The property market potentail investers are mainly are NRI's and FDI's. In the normal situation there would have been impact due to hike in the interest rate.

The retail sector which is going to create four times more than the IT and ITE'S which 8 million jobs and imagin the requirement of land to establish these retail outlets and warehouse and assoicate markets.

Retail investers and FDI's still feel the price is lower than the future demand and supply situations. In South India the demand is keep growing up due to huge IT and related investments, allocation of million of rupees towards infrastucture developments, Metro and New Internataional aiport, new IT companies setting up or expanding their existing presence.

Over and above the babyboomers are grwoing in a good size and so disposable incomes are growing up.

Indian culture owing a residential property is a staus simbal, which influences all the baby boomers to investment their surplus amount towards this segments.

In South India the realestate price will go North than rest of India.

higher end properties are holding their value well; lower end ones have gone down, as rising interest rates have forced a lot of low-end owners to sell in a hurry (or their banks foreclosed) and other low-end buyers don't have the funds to buy them

as you have time to sell, you can hold out for your price .If you have enough equity in the place to fund most of your building plan, then sell it, as this is much better than trying to borrow for the project....buildings often go over the original price and schedule so your loan could go up too, as might interest rates.