Liquidity crunch, housing scheme put pressure on real estate market.
There is some good news for property buyers. Real estate developers here have started offering discounts.
In the wake of liquidity crunch in the market coupled with the state government’s initiative of launching affordable housing schemes, the developers have started announcing huge discount on purchase of flats. Till now they were offering only freebies and rebate on interest rates, but now they offering discount on actual price of the flat to attract customers.
One of them in east Ahmedabad has offered a discount of Rs2 lakh, if the property is booked within two weeks. Another developer has offered 30% discount on a recently launched scheme.
According to sources, pressure on the developers to offer discounts increased after the state government announced several housing schemes for the economically weaker sections, lower income groups and middle income groups, recently.
Ahmedabad Municipal Corporation (AMC), Ahmedabad Urban Development Authority (AUDA) and Gujarat Housing Board (GHB) have received a good response from the prospective buyers.
Expecting more such offers coming up in near future, Kintan Soni of Svasaar Value Builders said if developers can afford to give 30% discount, it showed that real estate prices were exorbitantly high in the city.
“Affordable housing schemes also create pressure on the developers. So they will come up with attractive offers in future,” he said.
Admitting that the real estate market was reeling under pressure across the country, including Ahmedabad, one of the leading developers here said due to liquidity crunch everyone was trying to cope up with it in one way or the other.
“Peer pressure for not reducing the rates works only up to a certain extent. However, when the situation turns out of control one has to reduce rates,” he said.
However, office-bearers of Gujarat Institute of Housing and Estate Developers (Gihed) denied that there were pressures on the developers. “The real estate market is doing well. Majority of the developers in Ahmedabad do not engage in over leveraging, so they do not face any liquidity issue,” said Yogesh Bhavsar, president of Gihed.
However, certain developers might be facing problems as they buy land using the investors’ money, he added.
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