Sunday, November 2, 2008

Real estate developers will be forced to reduce prices

Is there anybody who has booked a flat in Diwali?

Ask any real estate salesman in Pune and he will tell you that very few bookings happens in Diwali. However, builders give offers and release big ads in the festive season because it creates an impression that buying home is a joyful experience. Newspapers also promote the myth of buying a property in Diwali only for an advertising revenue from the builder.

Considering this, Mr. Raja Awasthi of ET Bureau, it is not fair to say that "With Diwali having come and gone and no increase in sales in the real estate sector, it now seems certain that developers will be forced to reduce prices at least in the residential segment.

Unrealistic expectation!

Even Mr. Anuj Puri, chairman & country head of Jones Lang LaSalle Meghraj, who knows how property market works, doesn't take a side of real estate developers! He says, "It was unreasonable for the promoters to hope that the Diwali season would somehow pull the real estate market out of the doldrums."

Turnaround in a couple of years!

"No buyers for any kind of real estate..."
"80-90% drop in the number of deals..across all metros and tier II cities..."
This type of statements makes me sad. I was almost going to stop the reading but Sanjay Verma, executive MD, South Asia, Cushman & Wakefield cheered me up! He says, "The turnaround phase should come in another 18 months to two years." How? Very simple!
"Once real estate prices sink to more realistic levels, the watch-and-wait stance currently evident....
Why don't you visit The Economic Times to read his sweet words?

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1 comment:

  1. Hi Ravi,
    I am looking forward to booking a 3BHKflat in Sancheti developers project Mount ‘n’ Glory in Kharadi. Can you comment on few thinks like Reputation of the builder, what is the price range in that area and about the project as on whole. One thing I am concern about projects in that area is people tell me there is a huge water problem in that area.