Saturday, June 14, 2008

Real Estate Sector in India - Challenges

Real estate sector in India is facing following challenges -

Demand Slowdown
High Interest Rates (18 - 20% By Banks)
Rising Input Costs (Cement and Steel Prices are increasing)
Cash Crunch (Most of real estates are facing 50-70% cash crunch and this has forced them to pick up cash from unorganised sectors at interest rates as high as 35% to 50%)

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