If there is one expression other than terror that can sum up 2008, it’s undoubtedly economic slowdownAt many sites, projects were discontinued and new launches deferred. While the stalemate continues, all hopes now lie on a potential marked reduction in the lending rates by financial institutions, being seen as the one step that may salvage the Pune real estate industry tottering at present.
A factor responsible in good measure for the scenario was changes in the booming IT industry. IT professionals, who had become a large chunk of buyers of houses in the past two years and also contributed to the unprecedented price rise thanks to their large disposable incomes, suddenly became a vulnerable section themselves. As IT firms faced the grim consequences of US slowdown and changing rupee to dollar ratio, the results manifested themselves in the form of salary cuts, stringent cost-cutting measures and even closures and pink slips.
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