Friday, July 17, 2015

The real estate prices should crash for the economy to revive

Where is the slump in real estate? Builders with black money and other investors with black money accumulation have been investing in real estate expecting a further boom which is unfortunately not taking place and it is a sign of strength in the Governance standards.  In fact real estate prices  should have a real crash so that middle income and lower group of people  can think of having some shelter. The approach to curtail black money deals and the expectation that all transactions including the real estate transaction would have to be routed through banking channels with proper tracking with PAN numbers and linking with IT returns, people with black money who are the major investors in real estate may perhaps be avoiding real estate deals. It is a very good signal and the real estate should crash which will help the economy to be back on the growth trajectory.  Nobody is able to afford thinking of doing any economic activity thanks to exorbitant real estate prices  and this slump should result in a crash and economic activities need a revival. The inflation which is killing the economy and the poor alike will also come down if real estate prices are kept as low as possible. 

Dr T V Gopalakrishnan

No comments: