Gurgaon real estate market has always played big. Be it property prices, project launches, and provision of luxury, Gurgaon never down-played any element. Known for its upmarket feel, this part of NCR has always been the talk of the town. However, the performance of the realty market is not very positive. The latest edition of Housing Sentiment Index (HSI), a joint initiative by Magicbricks and IIM-B stated that there are high levels of unsold inventory in Gurgaon.
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One major reason is the steep appreciation of property prices. Gurgaon has witnessed a nine per cent drop which amounted to 67 per cent HSI this quarter. This means that buyer sentiments regarding property purchase dropped by nine per cent. Is there a solution to revive the sentiments of buyers?
The rest of India is in the same plight, especially the metropolitan cities. Reserve Bank of India governor, Raghuram Rajan mentioned, "I do believe that if real estate developers who are sitting on unsold stocks bring down prices, that will be a very great help to the sector because once there is a sense that prices have stabilised, more people will be willing to buy," at the second SBI Economics and Banking Conference, 2015.
However, developers’ body CREDAI counter-reacted saying that there is no scope to reduce housing prices. Rather, they demanded a reduction in the interest rates on home loans as well as taxes to boost housing demand. “Housing prices have gone down by 15-20 per cent on an average in the last two years across India, while input costs have risen by 15-20 per cent,” said CREDAI president, Getamber Anand.
"Any further decrease in sale prices would mean an out of pocket expense for the developers. Thereby, acting as the last nail in the coffin of an industry which contributes so much to the economy and employment at large," Anand added.
Developers’ feel that it depends largely upon the state to rationalise taxes, ready reckoner rates and streamline the approval process to bring down property prices and provide relief to the end-user.
They feel that rate cut in home loans is the need of the hour to relieve the burden of mounting EMIs from the home buyers.
Source - TOI
www.sevagiri.com
One major reason is the steep appreciation of property prices. Gurgaon has witnessed a nine per cent drop which amounted to 67 per cent HSI this quarter. This means that buyer sentiments regarding property purchase dropped by nine per cent. Is there a solution to revive the sentiments of buyers?
The rest of India is in the same plight, especially the metropolitan cities. Reserve Bank of India governor, Raghuram Rajan mentioned, "I do believe that if real estate developers who are sitting on unsold stocks bring down prices, that will be a very great help to the sector because once there is a sense that prices have stabilised, more people will be willing to buy," at the second SBI Economics and Banking Conference, 2015.
However, developers’ body CREDAI counter-reacted saying that there is no scope to reduce housing prices. Rather, they demanded a reduction in the interest rates on home loans as well as taxes to boost housing demand. “Housing prices have gone down by 15-20 per cent on an average in the last two years across India, while input costs have risen by 15-20 per cent,” said CREDAI president, Getamber Anand.
"Any further decrease in sale prices would mean an out of pocket expense for the developers. Thereby, acting as the last nail in the coffin of an industry which contributes so much to the economy and employment at large," Anand added.
Developers’ feel that it depends largely upon the state to rationalise taxes, ready reckoner rates and streamline the approval process to bring down property prices and provide relief to the end-user.
They feel that rate cut in home loans is the need of the hour to relieve the burden of mounting EMIs from the home buyers.
Source - TOI
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