Last 12 month 10 times key interest rate hiked by the RBI (Reserve Bank of India) to reduce inflation. But, not happen any thing. Same time RBI has made it difficult for real estate developers to get bank loans for construction,classifying the sector as high risk.
In such a situation developers in major cites are trying to create liquidity to finish their projects. According to a recent Prabhudas Lilladher report, Mumbai,where real estate developers/promoters are the most stressed, has seen a 20% drop in property registration in November, 2011 compared to a year ago.
If any single person or a group of buyers sit with a developer/ promoter today, he/she/they arr willing to reduce prices by up to 15- 25%.
For an example Navi Mumbai based Shivam Bullders is giving discounts in its projects in Panvel and other places around Mumbai.
Recently, real estate firm BPTP tied up with India's leading Housing finance company HDFC to offer home loans at 5.99% for the first 5 years as against 12-13 % today. This will help houes buyers who are sitting on the fence because they are uncertain about the interest rate scenario
IT hub Bangalore,which has seen steady sales in previous quarters, is seeing volumes soften in the last few months. Here Mantri, Puravankara, Century Real Estate, Sterling Developers and other developers are willing to offer. This schemes that will save buyers at least 10-15% of the price.
The same situation is in major cities like Chennai, Gurgaon & Noida are offering discounts. It is ranging about 15% to 25%.
Some developers gives in the form of direct discounts. Other developers in the indirect discounts.
This discount will help the developers to stimulate sales in a falling market. Developers get rid of their inventories and finish projects speedy.
Developers,especially those with a lower holding capacity,are willing to lower prices in niche markets pan India.
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