Q: Last time when there was news that Fed Reserve Bank of US is going to stop QE (Quantitative Easing) the Indian Rupee fell from 1 US$ = 60 Rs to 1 US $ = 70 Rs. Fortunately the Fed Reserve Bank of US did not stop QE. This time around the probability of tapering QE is very high. In that Rupee will definitely be falling. What will be impact on Ahmedabad real estate prices?
The main impact on developers is it indirectly affects cost of services and raw materials like steel, consultancy, outsourcing of architects or wages of labour,engineers, cement, transportation etc. This raises the cost and time index of project,...which leads to delay of projects.
@Supratim : Buyers and investors stop investment in property due to a quick high in daily household objects and other things. The buyers who are paying EMI along with the rent feel the real heat of rupee depreciation in the form of a three way pressure. NRIs enjoy the rupee depreciation and then do investment in real estate in order to enjoy better appreciation in the long term.
HI Sunil : The main impact on real estate is : Construction cost increases because the cost of import increase. Increase in demand of the property : NRI buying property in India becomes easy, but for Indians to buying property in abroad becomes difficult.