Saturday, December 6, 2008

Reducing property prices of the ongoing project would be suicidal!

Stating that he (Sunderlal, sales head of Sahara’s Real Estate) cannot see any player cutting down on the prices of their running projects, he opined that the move would be suicidal.

“Those developers who are in deep financial trouble may be forced to cut prices in order to boost demand for housing projects but cutting down prices will be suicidal. The more we reduce, the more confusion there would be regarding the change in the market scenario. People would hold on to buying and expect prices to go down further, forcing the developers to reduce more. That would be a never-ending cycle. And furthermore, how can we reduce prices when the prices of raw materials have not gone down? We will not be able to survive if we do that,” he added.
To read more, please, visit - Sahara to defy realty slowdown

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2 comments:

  1. Reducing prices suicidal?? very funny statement in globalisation and capalists economy..where did you studied economics Mr/Ms Author of orginal post (or sponsored article?) Who said, input costs have not come down...look at Steel , cement and even labor...these are stupid tactics builders are playing...they were very smart and intelleigent to apply demand supply principle and increase costs which of course was not in propotion to input costs. dear builders, its time to apply same priciple now...do you hear us? you kind of applying these policies only one way which doesn't work in capitalism...you can't get away or manipulate this. everyone knows your profit margines sometime back...which you are still living for such patience now..but buyers too learned a lot in this patience game..lets see who wins..ALL THE BEST!

    Ravi,
    I don't see posts in your own writing and your own opinion..lately I see reference link articles..c'on Ravi we don't frequent your blog just to see these builder sponsored articles and their stupid analysis..forecasts...we would like to hear from you. Keep the good work!

    -Anil

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  2. Did buyers asked builders to build flats if selling at desired affordable rates is not possible ? No.

    It was builders who are at fault. They went into sucidal projects. They paid huge land costs assuming buyers will follow. Buyers who value their money did not follow.

    During boom, to take their piece of cake, steel and cement companies hiked prices. Buiders assumed buyers will absorb the input costs. But no, buyers will not.

    And for those project's whose land acquisitions were made earlier than last 2 years, thye have got it cheap. Its greed which is forcing them not to reduce prices. And that greed is sucidal. Also for some input costs were highly exaggerated to mislead buyers. They know it.

    On both counts, its builders who went into bad business of RE. Its time they suffer now, just as hundereds and thousands of buyers who bought at inflated prices are suffering now.

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