Realty tries to put downturn to bed with 10-15% hike in prices
The Economic Times, September 3, 2009, Page 1
Developers Jack Up Prices In Mumbai & NCR; Move Likely To Dampen Demand
Sachin Dave MUMBAI
WITH residential property buyers gradually returning to the market, especially in key regions like New Delhi-NCR (National Capital Region) and Mumbai, realty prices in these areas have moved up 10-15%. While some developers have increased prices across projects, others are doing it on a project-specific basis.
Industry trackers say the hike in prices could result in demand moving southwards. Realty fund Kotak Investment Advisors’ director, Vikas Chimakurthy, said, “There was a substantial demand, especially in the mature markets, after prices dropped a few months ago. Today, potential customers are not willing to buy properties at these (higher) prices.”Developers, meanwhile, confirmed the decision to hike prices. “We have increased prices across all our properties by 10%. It is not much and is the result of the improved market conditions,” said Abhishek Lodha, director, Lodha Developers, a Mumbai-based company that has projects in and around the city.
Delhi, like Mumbai, is witnessing a hike in prices of realty projects. DLF, the country’s largest real estate company by market capitalisation, is one of those whose properties will be dearer. “Yes, there has been a price increase though it is still limited to some projects nearing completion,” said DLF executive director Rajeev Talwar.
How long these prices will hold out is hard to determine. “Mumbai and some parts of New Delhi have been witnessing some rise in price and it will be interesting to see if these prices are sustainable. In other markets like Bangalore, supply still exceeds demand,” said real estate consultant Saffron Asset Advisors managing director Ajoy Veer Kapoor.
As realty gets pricier, there has been concern among buyers about whether this is purely on account of the economic scene improving or due to builders reaching an understanding among themselves. Though prices have not reached the 2007 levels, the hike has been enough to make buyers think twice. “We are still a while away from the 2007 levels, which could take two more years. In our case, we have increased prices by around 5% for our projects and are hopeful of a recovery by the end of this year,” said Hiranandani Constructions managing director Niranjan Hiranandani.
The Economic Times, September 3, 2009, Page 1
Developers Jack Up Prices In Mumbai & NCR; Move Likely To Dampen Demand
Sachin Dave MUMBAI
WITH residential property buyers gradually returning to the market, especially in key regions like New Delhi-NCR (National Capital Region) and Mumbai, realty prices in these areas have moved up 10-15%. While some developers have increased prices across projects, others are doing it on a project-specific basis.
Industry trackers say the hike in prices could result in demand moving southwards. Realty fund Kotak Investment Advisors’ director, Vikas Chimakurthy, said, “There was a substantial demand, especially in the mature markets, after prices dropped a few months ago. Today, potential customers are not willing to buy properties at these (higher) prices.”Developers, meanwhile, confirmed the decision to hike prices. “We have increased prices across all our properties by 10%. It is not much and is the result of the improved market conditions,” said Abhishek Lodha, director, Lodha Developers, a Mumbai-based company that has projects in and around the city.
Delhi, like Mumbai, is witnessing a hike in prices of realty projects. DLF, the country’s largest real estate company by market capitalisation, is one of those whose properties will be dearer. “Yes, there has been a price increase though it is still limited to some projects nearing completion,” said DLF executive director Rajeev Talwar.
How long these prices will hold out is hard to determine. “Mumbai and some parts of New Delhi have been witnessing some rise in price and it will be interesting to see if these prices are sustainable. In other markets like Bangalore, supply still exceeds demand,” said real estate consultant Saffron Asset Advisors managing director Ajoy Veer Kapoor.
As realty gets pricier, there has been concern among buyers about whether this is purely on account of the economic scene improving or due to builders reaching an understanding among themselves. Though prices have not reached the 2007 levels, the hike has been enough to make buyers think twice. “We are still a while away from the 2007 levels, which could take two more years. In our case, we have increased prices by around 5% for our projects and are hopeful of a recovery by the end of this year,” said Hiranandani Constructions managing director Niranjan Hiranandani.
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