"CRACKS IN REALTY LOBBY AS PRICES ARE SLASHED BY 15-30%"

The realty is finally dawning. After months of steadfastly offering minor freebies to boost dwindling property sales, developers in Mumbai and Thane are cutting rates by as much as 15-30%.

PROJECTS AT THANE:

Kalpataru Constructions slashed property rates by almost 23-28% in their Siddhachal residential project at Pokharan Road No 2 in Thane. Instead of the earlier asking price of Rs 5,500 per sq ft, the developer is now quoting Rs. 4,250 per sq ft for Siddhachal 3A and Rs 4,000 per sq ft for 3B.

Hiranandani is quoting Rs 5,100 per sq ft for its Elysium project on Ghodbunder Road, which is scheduled for completion in 2011.

Akruti City has launched a new project on Pokharan Road No 2 for approximately Rs 3,800 per sq ft.

The Runwal group, which was earlier planning a complex of 2.53 BHK flats in Thane (W), cut the sizes down to 1-1.5-2 BHK at Runwal Estates, a residential project of 15 towers at Thane's Ghodbunder Road.

 

PROJECTS AT MUMBAI:

Though Vikas Oberoi of Oberoi Constructions is considering to slash rates by Rs 1,500 per sq ft at his Oberoi Woods project (from levels above Rs 10,000 per sq ft) at Goregaon

Ekta Shelters has reportedly cut rates by almost 15% in all its projects, including Lake Homes at Powai, and Ekta Terraces and Ekta Meadows at Kandivli, where rates were earlier above Rs 7,000 a sq ft.

Sunil Mantri Realtors said it was open to negotiations on the quoted rate of Rs 5,500 a sq ft for flats at Mantri Park in Goregaon.

Rashmi Housing, which has also launched a project in Dubai, is offering a 30% cut from its launch price of Rs 2,900 per sq ft for a flat in its integrated township project at Virar.

At Orbit Haven on Napean Sea Road, Orbit Constructions is building 2,500-2,700 sq ft apartments instead of 4,500-5,000 sq ft ones. The rates have been cut to Rs 45,000 from the earlier Rs 55,000 a sq ft. Another building, Orbit Grande at Lower Parel, is priced at Rs 12,000-18000 a sq ft, down from Rs 17,000-22,000 a sq ft.

 

The rate cuts for under-construction residential projects across the city are in addition to the 15% discounts offered by developers in existing projects.

This cut is still not adequate. The market sentiment is negative. The job scenario is uncertain. As a result, affordability has gone down. Rates will have to fall by another 10-20 % as consumers believe the rates are still high.

Sanjay Goyal, chief operating officer of Liases Foras, a real estate rating and research agency, says that developers are also launching projects at new prices that are almost 20% lower than existing rates. This confirms that the market is on a correction course.

The money the developers will raise from the initial sales will then be used to complete existing under-construction projects. Given the shrinking affordability factor, many developers are downsizing their flat offerings to bring them within budget.

CONCLUSION - Since big builders are facing cash crunch and they are reducing price, So before banks lend them more money, this is your opportunity to close the deal.

OUR EXPERIENCE - In last 30 days, we have concluded 2 deals for our NRI members at Rs. 6,500/- rate (nearly 30% down), which was six months, back quoting at Rs. 9,000/-. RUSH YOUR ACTION NOW.