When Finance Minister Arun Jaitley instructed banks to release funds in public domain and last week when RBI relaxed Repo rates, its sign that there is acute cash crunch in the market. Credit markets almost collapsed and there is no credit facilities offered by traders and manufacturers.
The cash crunch have squeezed the hands and funds are not available. Premium housing segments always has takers either in businessmen or top honchos of corporate world. Neither businessmen doing well as credits are dying nor top honchos feeling safe of their employment. The job market is volatile and unpredictable.
Premium housing segment across nation is hit hard. Last seven months, less than 100 properties recorded in Bandra West to Andheri W area. Same is the case with South Delhi, Central Delhi or Posh Satelite area in Ahmedabad. Kalyani Nagar or Jangli Maharaj Road have seen nil sale.
Anything above 1 crore do not have takers. Real Estate looking for millionaires but according to Income Tax department only 4% of tax payers are showing income above ten lakhs. For crore of rupees to fund for housing finance, one must have income above ten lakhs. Hence affordability reduces even if family income or spouse income put together cannot exceed that limit.
Rates correction is eminent.