Bloomberg cited Mr Kushal Pal Singh chairman of DLF Ltd as saying that it has deferred some projects and plans job cuts to cope with the economic slowdown.

Mr Singh said that prices have come substantially down, so much that projects will shut down.

He said that “There is a lack of money supply to developers. It is paying 12% to 13% interest on loans.”

He said that home mortgage loans should be brought down to 7% to boost demand. State run Bank of India on November 6th reduced loan rate to 10% from 10.75% on 15 year loans for up to INR 5 million.

Mr Singh said that “There will be takers only when you bring down home loans.”

Mr Singh recently said that the decline in raw materials costs including steel and cement would help bring down property prices.