Rajan’s Compelling Argument on Realty Prices

Rajan raised genuine worries about an unsavoury scenario that has persisted for a little too long in this sector—of prices remaining high and demand failing to pick up. “I think we need the market to clear, and with growing unsold stocks, we need to figure out ways to do it,” Rajan, lionised the world over as a top-notch economist, was quoted as saying. The RBI Governor’s statement has been lauded by many economists because the property sector in India is currently struggling with a slide in demand and high inventory of unsold flats.