Prices Have Fallen Considerably
Prices Have Fallen Considerably: Realty experts say this is the right time to buy flats and houses
Suddenly, owning a house has become a lot easier. After reigning high for a couple of years, property prices have fallen considerably in the last six months bringing cheers to those planning to buy a house or plot. Realty experts say this is the right time to buy flats and houses since the prices are `lucrative'.
To attract middle-income customers, real estate companies are offering discount schemes. Firms that developed layouts in city outskirts have reduced prices of property to give tough competition to rivals.
Fall of steel prices has also helped realty firms to rationalise prices of property. Steel prices which touched a high of Rs 50,000 per tonne have now come down to Rs 32,000 per tonne. This has brought down the cost of construction by around Rs 70 per sq ft, bringing cheers to both realtors and buyers. There is hope construction cost would get reduced again with inflation and oil prices coming down in a couple of months. Karvy Relaty India Limited, which has conducted a study on the current real estate scenario, said that it was the right time for the investment because of the ongoing `correction' in the market. 'Almost all the companies have reduced prices to around Rs.200 per sq ft for flats,' said Mr Sarath Babu Sakhamuri, regional head of Karvy Realty India Limited. 'Plot rates have also been stabilised.'
Indu Projects, which had has taken up `Indu Fortune Fields and Indu Aranya,' said that big companies had never been too affected by the pricing system. 'We always fix the prices of properties based on the construction cost,' said Mr Mahender Basani, chief marketing officer of Indu Projects. 'So, we never jack up the prices even if there is higher demand. That is the strength of our organisation.' JSR Real Estates, which has developed `Sai Lakshmi Residentia' on the Bengaluru Highway, said the there was still huge demand for projects developed around the new international airport at Shamshabad.
'Buyers are still coming forward to invest in good projects which have got approvals from Hyderabad Metropolitan Development Authority,' said Mr J. Narayana, managing director of JSR Real Estates. 'Earlier, buyers used to purchase plots without verifying the growth potentiality and approvals of civic bodies. Now, they are very careful.' AP Builders Forum which has studied the latest market trends felt that Hyderabad would witness a fresh boom very shortly. 'It is better to book flats now; otherwise the rates of properties may go up again once the demand increases,' said Mr C. Sekhar Reddy, president of the forum. Builders are also urging the government to reduce taxes and the interest rates of home loans to 8 percent from 12 percent per annum to help customers. At present, the builders are paying around Rs 600 per sq ft as taxes and fee.
However, financial experts say the reduction in home loan interest rates can only be undertaken after the global economy stabilises. 'Indian real estate sector has also been affected by the recession in US economy,' said Mr K. Narasimhamurty, IDBI director. 'The Union government may take steps to boost the realty sector which creates huge employment all over India.'
Source: PR-Inside.com
Suddenly, owning a house has become a lot easier. After reigning high for a couple of years, property prices have fallen considerably in the last six months bringing cheers to those planning to buy a house or plot. Realty experts say this is the right time to buy flats and houses since the prices are `lucrative'.
To attract middle-income customers, real estate companies are offering discount schemes. Firms that developed layouts in city outskirts have reduced prices of property to give tough competition to rivals.
Fall of steel prices has also helped realty firms to rationalise prices of property. Steel prices which touched a high of Rs 50,000 per tonne have now come down to Rs 32,000 per tonne. This has brought down the cost of construction by around Rs 70 per sq ft, bringing cheers to both realtors and buyers. There is hope construction cost would get reduced again with inflation and oil prices coming down in a couple of months. Karvy Relaty India Limited, which has conducted a study on the current real estate scenario, said that it was the right time for the investment because of the ongoing `correction' in the market. 'Almost all the companies have reduced prices to around Rs.200 per sq ft for flats,' said Mr Sarath Babu Sakhamuri, regional head of Karvy Realty India Limited. 'Plot rates have also been stabilised.'
Indu Projects, which had has taken up `Indu Fortune Fields and Indu Aranya,' said that big companies had never been too affected by the pricing system. 'We always fix the prices of properties based on the construction cost,' said Mr Mahender Basani, chief marketing officer of Indu Projects. 'So, we never jack up the prices even if there is higher demand. That is the strength of our organisation.' JSR Real Estates, which has developed `Sai Lakshmi Residentia' on the Bengaluru Highway, said the there was still huge demand for projects developed around the new international airport at Shamshabad.
'Buyers are still coming forward to invest in good projects which have got approvals from Hyderabad Metropolitan Development Authority,' said Mr J. Narayana, managing director of JSR Real Estates. 'Earlier, buyers used to purchase plots without verifying the growth potentiality and approvals of civic bodies. Now, they are very careful.' AP Builders Forum which has studied the latest market trends felt that Hyderabad would witness a fresh boom very shortly. 'It is better to book flats now; otherwise the rates of properties may go up again once the demand increases,' said Mr C. Sekhar Reddy, president of the forum. Builders are also urging the government to reduce taxes and the interest rates of home loans to 8 percent from 12 percent per annum to help customers. At present, the builders are paying around Rs 600 per sq ft as taxes and fee.
However, financial experts say the reduction in home loan interest rates can only be undertaken after the global economy stabilises. 'Indian real estate sector has also been affected by the recession in US economy,' said Mr K. Narasimhamurty, IDBI director. 'The Union government may take steps to boost the realty sector which creates huge employment all over India.'
Source: PR-Inside.com