Look, who is talking!For ages, in Indian real estate market only banker who could dare to speak out his mind was Mr. Deepak S Parekh, an unofficial crisis consultant of India. However, in the last week, the chairman of Housing Development Finance Corporation Ltd (HDFC) was little busy in his company's affairs.
Taking advantage of this situation, look, who is talking? BNP Paribas! The bank for a changing world!! French banking major who has recently acquired beleaguered Fortis' operations. BNP Paribas, who claims to have 'a historical association with India' and 'an unparalleled experience of the Indian economy', released a note this week.
Writing on the wall:In the note BNP Paribas says:
"With the writing on the wall pretty clear, developers are likely to be forced to reduce prices further and offer higher discounts to clear existing inventory and to rev up pent-up demand in the sector. We believe the sector fundamentals remain weak with both pricing and volumes under threat."
Convert demand into sales!
"Cash discounts, waivers in registration fees or stamp duty and free parking spaces do not excite property buyers. Offers do not change their mind. Reduce property price. Convert demand into actual sales!"You may wonder, why BNP Paribas, the private bank, which is eying Lehman India's assets, who has invested is DLF and Unitech, jumped to this conclusion? Only because of one residential property exhibition? Or two? PBAP and MCHI Property 2008!
Would you book a flat if the property rates come down?"Do not book now. Wait for six months." is an out dated slogan. Now, it's too late. Around six months back, lot of property buyers were expecting property prices to fall and anxiously waiting for that moment to book.
But recently, instead of property rates, economy is on the verge of collapse. Instead interest rates of home loans, who knows, banks may go down. Who will book a flat in the present economic uncertainty? Would you? Please, share your views in the comments. (Please, read comments policy!)
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