Fluctuating value of the Indian Rupee has posted a sort of threat to the real estate market because people are refraining from investing in the real estate business. Has the situation worsened to such an extent that putting a halt over the real estate investments is a right decision? Should property seekers buy now or not? Well, the picture should be presented clearly. This is explicative of the fact the dwindling of the rupee in comparison to other foreign currencies signifies its adverse effect on the country’s economic health. Not just this; it could affect the costs of raw material, labor charges, service charges, and even the price of architects or interiors.
As the rupee has hit its exceptional low, people have been hesitant in making real estate investments. Though, the falling value of Indian Rupee has created a favorable situation for people having existing properties; it could be a serious issue for aspiring ones. It is because sudden change or rise in the value of money can prove to be overhauled. Apart from this, a falling rupee value may aggravate the issue as RBI would increase interest rates over loans. In fact, it has already altered its interest rates and evokes the chances of a further increase. This tends to make the overall cost of the loans to be expensive. And this could affect the profit margins of the investors or sellers.
Along with profit margins taking a hit, the lowering value of the money will enable foreign investors to lap-up existing properties and purchase stakes in the new ones. Well, the other side of the coin states the fact that there are strong chances of wealth erosion; if the market is not able to sustain the constant change in the value of Indian Rupee. So, it is always better to go for a market analysis before taking any kind of step towards investing in real estate business. Obviously, the altering value of the rupee has affected market capitalization to a large extent.
Indeed, investing at this point in time for the foreigners as well as Indian residents is on the shattering side of the fence. Depending on the nature of the investment, it is mandatory for the investors to select the properties wisely enough to continue on the profitable front; rather than falling in the pit without any consultation.