More Pain Seen for India Property on Modi Graft Crackdown
- Property prices could fall 10 percent to 20 percent, CLSA says
- Indian property stocks post their biggest drop since 2009
India Pulls Big Bank Bills in Corruption Crackdown
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India’s property market is poised for further declines as Prime Minister Narendra Modi’s move to crack down on unaccounted wealth hurts one of the key methods that buyers employ to purchase real estate.
CLSA Asia-Pacific Markets, Credit Suisse Group AG and Nomura Holdings Inc. are estimating that property prices will fall further, after tumbling 20 percent in the past three years. India will withdraw high-denomination banknotes in the nation’s biggest crackdown against corruption in almost four decades. The move is a blow to the practice of investing in real estate using untaxed income, locally known as black money, which is typically stashed away in cash.