The ongoing tensions between Israel and Iran have the potential to impact various aspects of the Indian economy, including the real estate market in Hyderabad. Let’s explore how this conflict might affect the real estate sector:
The prices of crude has gone up leading to higher inflation all over the world especially in India. OPEC and Us has also decided to reduce the oil supply by 2% leading to higher crude prices. Higher inflation may force RBI to either maintain same repo rates or increase. If the repo rate is increased, the banks will enhance home loan interest rates. Enhancement of home loan interest rates will slow down demand for housing. Increase in inflation results in higher cost of construction materials. Overall effect will be escalation in cost of construction. This will lead to higher EMI for the customer.
The Indian rupee might come under pressure due to higher crude oil prices. Iran is a significant producer of crude oil, and any disruptions in oil supply could affect the Indian economy. Currency fluctuations can impact real estate investments, especially if there’s prolonged instability.
Uncertainty in global markets can influence investor sentiment. If the conflict escalates further, investors may become cautious, affecting their decisions regarding real estate investments. They may look for safer options like Gold. Real Estate investment is a longterm play, In longterm India outlook is very bright and Indian Real Estate will see uptrend. Therefore, Investors need not worry about incidents like this, but should be cautious if it develops into Global War.
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