Realtors may cut price by additional 20% to woo buyers
The Economic Times, February 4, 2009, Page 12
Rajesh Unnikrishnan & Supriya Verma Mishra MUMBAI
REAL estate developers are likely to cut home prices by an additional 20% in a bid to lure purchasers and customers who might otherwise shift to other financial commitments as the current fiscal year draws to a close in March. With banks also starting to cut home loan rates, people close to the development say the first quarter of the next fiscal year could see a substantial jump in home sales. Property rates across the country have fallen by about 15-20% with the decline in the economic situation. According to analysts, the impact from the ongoing financial crunch and the mounting pressure from various other circles, could likely peak by the end of March. That’s when many developers will be forced to sell unsold stock at a much cheaper price, said one executive with a leading developer. Currently, a lot of real estate developers are rushing to clean up their highly leveraged balance sheets. “In their last attempt to save diminishing margins, we could see some developers make their moves in the last quarter of FY09.
The Economic Times, February 4, 2009, Page 12
Rajesh Unnikrishnan & Supriya Verma Mishra MUMBAI
REAL estate developers are likely to cut home prices by an additional 20% in a bid to lure purchasers and customers who might otherwise shift to other financial commitments as the current fiscal year draws to a close in March. With banks also starting to cut home loan rates, people close to the development say the first quarter of the next fiscal year could see a substantial jump in home sales. Property rates across the country have fallen by about 15-20% with the decline in the economic situation. According to analysts, the impact from the ongoing financial crunch and the mounting pressure from various other circles, could likely peak by the end of March. That’s when many developers will be forced to sell unsold stock at a much cheaper price, said one executive with a leading developer. Currently, a lot of real estate developers are rushing to clean up their highly leveraged balance sheets. “In their last attempt to save diminishing margins, we could see some developers make their moves in the last quarter of FY09.
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