Indian developers asked to reduce investment property prices

November 24, 2008 by OPPE News

An Indian developer’s group has called on all its members to lower prices in an effort to re-ignite property investment transactions.

The Confederation of Real Estate Developers Associations of India (Credai) released a statement last week encouraging builders to offer discounts.

Many developers began lowering prices at the start of the Diwali holiday season after transactions began to slow earlier this year.

But some have held prices firm in the hope a sea change in the Indian credit market will arrive and help people to buy again.

Credai said:

“We believe that this is a time for all stake holders to work together in order to cumulate the benefits they can pass on to the customers so as to improve the affordability for the end customer and build confidence amongst home buyers.

“Some developers across the country have already reduced prices, Credai now requests all its members to do the same.”

Credai, which represents some 3,500 developers across India in 18 states, also said housing is a “critical engine of growth” for the economy.

Due to the diversity of prices and progress of projects, association officials said they were not able to suggest a precise percentage price reduction for builders.