India Today - House Prices Cut in Delhi
In the Delhi real estate market, Connaught Place in Delhi is one of the most expensive addresses in the world : rental values of commercial properties located in Connaught Place have risen sharply recently, not least because of the Commonwealth Games in India in 2010. Connaught Place is now the eighth most expensive real estate market in the world.
(India gate Connaught Place New Delhi)
However, in certain areas of India today buyers are becoming scarce, so property developers have taken the decision to cut prices by 5 to 10%.
The thinking is that people are waiting for prices to fall so the announcement of price cuts will help boost the market.
Rohtas Goel, President of Naredco and CMD of Omaxe said : "At present, end users are waiting for the prices of real estate to fall to enter the market. The decision to cut prices should meet their demand and make them purchase houses."
Kumar Geram, Chairman of Credai and CMD of Punebased Gera Properties, said the association has urged its member developers to lower prices to boost demand.
The rate cut came just 2 days after Finance Minister P Chidambaram’s plea for lower prices had been dismissed as unrealistic.
It is thought that prices of apartments between Rs 20 and 40 lakh should fall by 5%
apartments above Rs 40 lakh could see a 10% drop in prices.
Prices of the most expensive houses, i.e. over Rs 3,000 per sq.ft., will drop by a minimum of 10%. That means, a typical 3 bedroom apartment over 1,500 sq. ft. will now be Rs 45 lakh. Prices of apartments over Rs 1 crore would fall by at least Rs 10 lakh.
Affordable houses, of Rs 20 lakh to Rs 40 lakh, will only come down around 5% as thedevelopers say that they are already so low that there is little room to cut prices further.
The willingness to cut prices may make economic sense due to the high holding interest rate that builders par of 20% per annum. They also need funds to repay banks.
The cost of steel and other commodities has also fallen by 20 to 25% in the last three months.
India Travel
Connaught Place (official name Rajeev Chowk) is one of the largest commercial areas in Delhi. It is situated in the centre of New Delhi and is often abbreviated to CP. It is the location for the headquarters of a number of Indian firms.
Connaught Place is the commercial and business hub of Delhi. It has numerous restaurants, bars, shops and cinema halls. Outlets of most international brands can be found in the "inner circle" Benetton, Reebok, Allen Solly, Levi’s, Nike, Lee Cooper etc... . Some of the best restaurants, cafes and bars are here too
