Monday, November 3, 2008

Indian real estate developers likely to cut prices by 30% and more over the next 3 to 6 months

Disclaimer: Please, note that the news is about "Indian real estate". Not about Pune real estate. Read it but, please, do not expect 30 % + price cut in Pune real estate market.

"You may get 30% to 50% discounts even now!"

At a recent TiE-Indian Angel Network summit in the capital, industry players including real estate developers, private equity players and real estate brokers and consultants, all answered in the affirmative when asked whether they see the possibility of a price cut in future.

The Indian realty sector has been in a meltdown over the past few months. Prices for both commercial and residential property have come off by 20-25% over the past few months. Industry experts and players say they expect them to go down further.

Real estate builders Kailashnath Group’s managing director and owner Sanjay Khanna says those who are not reducing prices now will be forced to do so in some time.

Yet another real estate developer Ashish Mathur, head of business development and marketing for Mahindra World City simply says, “Yes they will”, in answer to Sanjay Bansal’s question on the 30% plus fall for realty prices coming forward.

Anil Chawla, private equity head for of DE Shaw & Company, one of the biggest private equity investors in real estate in the country, says he also expects the prices to fall. “I have already begun hearing rumours that some developers are planning major price reduction plans by Diwali,” he says.

Similarly Santhosh Kumar, deputy CEO of Jones Lang LaSalle Meghraj, one of India’s leading real estate consultants and brokers, says that there are definite prices discounts available for people who are willing to pay upfront even now. “They may get 30% to 50% discounts even now,” he says. To read more, please, visit - livemint.com

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8 comments:

  1. I am doing real estate agency business from 1992 in Pune. Please don't send messages that prices are going to be reduced by 30 to 40% in Pune or that builders are giving 30 to 40% discount right now. This messages will misguide the people who are seriously interested in buying house for themself. If they won't buy house now they will buy home at high price in future. Government is reducing home loan interest rate and investor will take benifit of the same.
    www.houseofproperties.net

    ReplyDelete
  2. 30%? I think market will move only after rates are down by more than 50% which still are too high for most of the buyers.

    About message of misguiding, the fact is till last 4 years builer community has misguided people and charged 4 times more rate than it actual deserves. Reasons given were varied from demand-supply ratio, input costs, hot area, peer pressure, misleading paid articles in media..etc.

    Now the tide has reversed and these fouls are now crying, telling others not to misguide where there are only plain facts visible everywhere.

    ReplyDelete
  3. Dear Anonymous (from another anonymous!)

    Rates reduction is not going to help because of the severe recession the world is bracing up to face. There will be heavy job losses and salary/income reductions.
    Loan rates reduction would only help existing loan holders to manage their finances better. Of course, and businesses. But it would be foolish to assume that lower rates will propel the real estate market! So, please don't send messages that loan rates reductions are going to increase sales and property rates any time soon!

    ReplyDelete
  4. Gunuine buyers are not able to buy new homes beacause of the high property rate, not because of high interest rate. So all real estate agents, builders, marketeers please be sure that people will start buying the homes only after 50% correction in prices.

    ReplyDelete
  5. the agent here is baffled to see the realty of real estate....he might be affraid of his lower income.
    prices are to come down as many people have already dropped their plans to buy any second or third house

    ReplyDelete
  6. the last four comments seem to come from the same person :-)

    he is a bear who is present on other blogs too , misguiding people.

    Anyways , I agree with the real estate agency guy that Prices will again increase one the Interest rates are lowered.

    ReplyDelete
  7. Prices has already lowered by 30%. By screaming on blog that prices are stable, shows your stupidity to whole world.
    Go to the builder & do a serious bargin, in 2-3 bargin session you will get reduced price.

    This 20-30% price reduction is just the begining, next year it will be much below. Current price in Baner has came down from 3400 to 2600,next year it will stabilize between 1800 to 2200.

    ReplyDelete
  8. Ok guys....
    I challenge all those guys who claims that real estate rates have gone down. Show me 6 property projects in pune where prices have gone down by at least 20%. Then only I will accept ur claims.
    I have been following real estate market for last 2 years. For last one year every one is saying wait for 6 months.
    Now even people are saying rates have gone down. But hardly u can see any projects where rates are down. Most have kept it constant but not reduced.

    ReplyDelete