Real estate index of the BSE the worst hit, down 5.4%

Mumbai:
In the last week property market has down by 5.4% at the index of the BSE. And according to the sector watcher’s report downturn in Real estate market is due to increasing property rates and hike in home loan rates. Similarly according to the market reports biggest real estate companies such as DLF and Unitech are deep in the red comparatively with the prices on October 27, 2008, the day the sensex had crashed below the 7,700 mark in intraday trade.
However, Unitech is decrease by 35% since the late October 2008, and DLF is down by 4.6percent.
On the other hand 11 times rates hike by RBI has added the fuel to fire, pushing up lending rates for banks, because of these mounting rates of Banks resulted is diverting homebuyers mind from property markets and in the end Real estate companies are suffering, sources said.