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Saturday, November 22, 2008

Pune builders will not see any cut in home prices

(Isn't it naive to ask a builder about reducing the property rate?)


1) The prices have already reached the bottom.

2) High interest costs

3) Charges levied by Pune and Pimpri-Chinchwad municipal corporations

4) High input costs

Means - Pune builders are desperate to cut property prices! The official quote is always opposite of what PBAP actually means. Remember, the statement about price rise because of steel and cement rates?

The Pune builders’ community has flatly refused to effect any price cuts in residential projects, even after major realty organization like the National Real Estate Development Council (NREDC) and the Confederation of Real Estate Developers' Associations of India (CREDAI) asking its members to slash prices.

“The last few months have been a very tough time for the entire community because of the slowdown in the market and several other reasons. The prices have already reached the bottom. I see no scope at all for any further reduction in home prices in Pune,” said Lalitkumar Jain, president of Promoters and Builders Association of Pune (PBAP).

According to a realty consultancy firm, a flat in some of the decent areas commands a price between Rs 3,000 and Rs 8,000 per sq ft, still a distant dream for most prospective buyers.

Blaming it on high interest costs and charges levied by Pune and Pimpri-Chinchwad municipal corporations and input costs, developers said that the prices in Pune have already seen all possible reduction.

Related Story:

1) Builders will increase the rate according to the stage of the construction, says Shantilal Kataria, while talking on rising property prices in Pune

2) Builders in Pune dismiss suggestions that the property prices are heading for a sharp drop, claims that the demand is steady & still outstrips supply

3) Developers are likely to be forced to reduce prices further and offer higher discounts to clear existing inventory - BNP Paribas

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  1. Prices have hit rock bottom? Where? Which builder has reduced ? Let them sit on their un-sold inventory - let them deny the ground realities - let them live with an illusion that buyers will return and pay whatever price they think is right - ultimately demand Vs supply rule will prevail. Affordability, common man's buying power, economy and market sentiments will drive the market - and not builder mafia.

  2. No further cuts? Ha ha ha ha!!! What a foolish and misleading statement!

  3. Even if rates in market go down to 10 Rs. per sq ft, PBAP will always state rates are not being cut anywhere.

    The most greedy cartel in the world exists as PBAP. Eveyone wonders if some builders want to lower prices and boost sales, PBAP may nto allow him and threaten a boycott. Its time for dismantling such organisation which are anyways against ati-trust lawas and laet builders compete int he market, a healthy sign of good real etstae.

  4. I do not know whether my employer will keep me or give pink slip? Who want these blood suckers (i.e builders ) rate reduction.

  5. http://www.r2iclubforums.com/forums/f25/www-ziggurat-co-ziggurat-dont-even-go-there-9148/

    Read this and don't ever go there ! This is what you is said :
    Utter nonsense and stupidity !
    That is how I would like to describe Al-track group.
    They don’t even care for the customer not even thinking of what their feedback will be.

    Before even thinking of buying a flat please visit his old projects and ask the customer over there . persuaded me to take ADF (Advance Disbursement Facility) with his some bank and for that he would give me registration & stamp duty free . But I got lucky that I didn’t go for it.

    I asked his customer ‘s about him and got this feedback : He has delayed possession of houses for 1 – 1 ½ years even after taking full amount from those poor people (by taking bank ADF and promising them to handover flat in 6 months ) , takes heavy society maintenance charges and doesn’t gives back a single rupee to the society back when the building is handed over to the society and gives some lame excuses about the money getting spent.

    Please read below in detail :

  6. Joke of the day. Mr. Lalit "Kumar" Jain has a good sense of humor.

  7. Please read the article on yahooindia news (http://in.news.yhoo.com/137/20081124/371/tbs-tight-credit-small-bonuses-hit-india.html)
    which says that the realestate markets should be ready to face a sharp fall in the price from 15 to 50 % all over India. Keep your eyes open and see the rate of job cuts in various markets including IT who are the majoy buyers for those costly flats. Wait and watch the prices coming down is the best strategy for now.

  8. PBAP is ruled by few of the top builders who lend money to small buliders with 2% interest,but this money will sustain them for little time and ultimately they will buckle and then every thing will come down.pune builders already have minted money and its time now to work with lesser profit and PBAP should be answerable to state and central govt,who have asked them to cut the prices.Anyway if at all the prices are cut also there will not be much prospective buyers,but atleast the buliders can breathe,if they cutdown.