Real estate developers will need to cut prices sharply in the second half of the financial year to convert demand into actual sales, as potential buyers continue to wait on the sidelines, industry watchers say.
Small developers at a residential property exhibition in Mumbai last week offered customers up to 15 percent discounts, waivers in registration fees or stamp duty and free parking spaces, but they failed to excite buyers, analysts said. Cash discounts still didn't change their minds, they added. "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.
While developers are hopeful of strong demand during the next two weeks to Diwali, the biggest Hindu festival, when demand is at its peak, they acknowledge volume sales will not be as high as previous years and a price correction is on the cards.
People will abstain from buying till the interest rates correct in the long-term
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment