Inflation is likely to take its toll on the property markets. The cost of living in Indian cities is rising like anything. The RBI in its annual policy for 2008-09, had expressed its intentions to bring down the rate of inflation to 5.5%, however, it had reached record high of 8.4%, averaging between 7-8%.
Rising fuel cost, also, is not a good sign for the markets. The cost of construction will rise.
Certainly, you and I, who could earlier think of buying a residential property on an EMI, will now have to recalculate how much can be paid towards loan installment.
Tough time!!!
