how come realestate prices are not even adjusting for rupee devalutation? inflation is showing in everything except realestate....wierd phenomena
the prices should also be qouted in usd so the devaluation is noticed more clearly.
Aamir replied on Wednesday, December 16, 2009 05:15 PM
This phenomena is because of two reasons.
1. The price of real estate is down the hill.
2. The value of rupee is depreciating.
Combination of both can't adjust the future value of the capital invested in real estate. To earn real profit in terms of financial management the values of two points mentined above have to be in positive.
Any gain in the presence of high rate of inflation is off set by devaluation and hence can't adjust accordingly. |
