Property developers in India are starting work on super-cheap developments which could give a much-needed boost to the Indian property market.
The country’s real estate sector has seen a tough time over the last six months after around four years of tremendous growth.
But some markets have fallen by as much as 70 per cent in the last six months, with prices in previously in-demand areas such as Greater Noida falling around 20 per cent.
Developer Unitech is now planning to develop houses costing Rs 40 lakhs – ‘exceptionally’ low for the local Gurgaon market, according to property site MastGhar.com.
MastGhar said in a statement:
“In smaller cities, they are planning to develop houses at an even lower price to attract the attention of a large number of purchasers. Ansal Properties and Infrastructure (API) is also modifying its plan to go with the changing scenario of demand in the Indian market.”
Some commentators predict property prices will still fall by some five to fifteen per cent even in the next two months, paving the way for a correction, and possible recovery, of the battered market.
Economic growth at the rate of eight per cent a year saw incomes soar in India, pushing prices skywards.
Foreign investors buying up properties began to nudge values even higher, eventually making property unaffordable in many areas.
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