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Q:

Which of the following will cause property prices to fall?

  • 1
    More liquidity in the economy
  • 2
    Reduction in reverse repo rate by RBI
  • 3
    Increase in reverse repo rate by RBI
  • 4
    Demand and Supply
  • Show Answer
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Answer : 4. "Demand and Supply"
Explanation :

Demand and Supply: For any given area, demand in the real estate will always be inversely proportional to supply. If there is a decrease in supply, prices will obviously go up for the existing projects. With an overall increase in the number of unsold housing projects, prices will go down for each one of them.

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