Tuesday 7 July 2009 - All stories compiled and edited by Bhaswati Das
Developers are stopping discounts, have stalled further price cuts, increased prices in budget housing projects launched recently, and are returning to revive high-end projects. Property experts said they do not expect this to be reflective of demand returning strongly to the housing market and think it is just that some developers are testing the waters with higher prices. Unfazed, developers say further price cuts are unlikely.
“Prices are likely to inch upwards in the coming months in some markets. Even if there is an increase in prices, it will still be far less than the high prices during the peak,” said Kumar Gera, Chairman of Confederation of Real Estate Developer’s Association of India (CREDAI). While the economic slowdown saw prices crashing by 25-30 per cent in most markets, the current price rise is only 10-15 per cent, added Gera.
In the last two months, while some developers such as Unitech Ltd, have increased prices marginally, some others — especially in Mumbai — have pushed up prices by up to 10-15 per cent.
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