Indian property developers appear to be gearing up to offer some big discounts as the sector continues to slow and trouble in world markets begins to bite.
Experts said cuts were now more likely given an ongoing fall off in residential sales which shows no immediate sign of easing.
Some Indian property markets could see a price correction as steep as 40 per cent if consumers continue to hold off on buying amid rising interest rates.
Pranay Vakil, chairman of Knight Frank India, said:
“In cities such as Mumbai a 10 to 15 per cent correction has already happened. It may rise to 25 per cent per cent by the end of the year.”
More upmarket homes have seen the biggest fall interest, which could mean some builders start moving into cheaper markets in the next 12 months.
Property Wire reports developers such as DLF, Puravankara, Unitech and Omaxe have said they are thinking of launching discounts and are looking at moving into more modestly-priced properties.
Last week Anuj Puri, quoted by the Business Standard, said developers would have to lower selling prices in order to “revive demand”.
The Associated Chambers of Commerce and Industry of India (Assocham) also recently called on the Reserve Bank of India to help reduce mortgage rates.
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