Tough times for Indian Real Estate Companies

Subsequent to the US sub-prime crisis, Indian real estate companies have shed almost 35 per cent of their market capitalization, reports say. Most of the listed real estate companies are currently valued at a rate 65-75 per cent less than the value they were holding prior to the meltdown in the US market.

Earlier, it had been said that the developing countries of Brazil, Russia, India and China won’t be affected much of US sub-prime crisis, however things have started turning sour just a few weeks down the line.

The story does not end here. The Indian Real Estate industry is likely to be in a much difficult phase with the recent hike in Cash Reserve Ratio (CRR)…