http://www.moneycontrol.com/india/news/cnbc-tv18-comments/excess-liquidity-intoxicated-realty-sector-deepak-parekh/405643
Anyone watching realty sector in Bangalore, Chennai and other metro cities of India know this truth.Even DINKS(Double Income No Kids) category would keep shuddering at the cost of home prices even though they were in high paying sectors like IT.The realty builders were so arrogant in Bangalore , that one of my friends told me, when he was planning to buy a flat 3 years ago,the builder raised the rate by 10% on weekends when they heard RBI had dropped its interest rates!
Builders like Mantri,Shobha and Purva built huge flat complexes having nearly 200-800 flats and priced each flat at 80lakhs cost(and that was the minimum price for a single unit).Imagine finding nearly 5000 people shelling out 80 lakhs in Bangalore.Did they conduct a market survey before deciding on such prices? even after shelling out such prices, a buyer needs to pay more like registration charges, water and electricity connection bills,vat,service tax etc
Instaed of decreasing the prices, the builders are now trying to postpone their loans to banks or trying to resolve the issue through QIP etc.It will not make much of a dent unless the consumer starts buying and for that, the builders have to decrease their prices.10-20% does not matter and has no effect.It should be atleast 50% now!
I am surprised that Parekh also makes fun of nano housing!
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