{"id":15949,"date":"2020-07-29T10:23:12","date_gmt":"2020-07-29T10:23:12","guid":{"rendered":"http:\/\/plyinsight.com\/?p=15949"},"modified":"2020-07-29T10:24:33","modified_gmt":"2020-07-29T10:24:33","slug":"developers-struggle-for-funds-prices-crash","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/developers-struggle-for-funds-prices-crash\/","title":{"rendered":"Developers struggle for funds, prices crash"},"content":{"rendered":"
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Developers struggle for funds, prices crash, buyers wait<\/strong><\/span><\/h3>\n
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Developers are worried about their loans. They want to sell, but buyers are in no mood to purchase,\u201d<\/p>\n

\u201cThere are good opportunities to buy now. But it is felt that prices will correct further,\u201d<\/p>\n

Faced with no movement in sales in the past three-odd months due to lockdown and Covid-19-related issues, property developers are resorting to price cuts.<\/p>\n

It is oversupply which is forcing developers to slash prices.<\/p>\n

Active sanctioned loans to the Indian real estate stand at Rs 8.1 trillion; Rs 1.2 trillion worth of loans were sanctioned to developers in 2019-20.<\/p>\n

HDFC Chairman Deepak Parekh said in April this year that property developers should be prepared for up to 20 per cent fall in housing prices, and must create liquidity by selling their inventory at whatever prices they get.<\/p>\n

Union Minister Piyush Goyal echoed Parekh’s views later. Goyal asked developers to reduce prices and sell their inventories rather than wait for the market to bounce back. \u201cUnless you reduce your rates, you will be stuck with inventories. You can be stuck with that and default or get rid of whatever you quoted at high prices. Consider it a bad decision and move ahead,\u201d he said. Local brokers already see prices crashing.<\/p>\n

All developers have cut prices. If you make full payment, there will be further discounts,\u201d says a prominent broker.<\/p>\n

\u201cNo one will make buyers unhappy due to prices,\u201d.<\/p>\n

Many say the price cuts are desperate attempts by developers to generate sales which were subdued for the past five-six years due to inflated prices.<\/p>\n

\u201cThis is a buyer’s market. Developers are ready to do anything. There is complete deadlock. There are no sales, no transactions, no registrations,\u201d. \u201cThe situation is worsening. Nobody knows what is happening,\u201d.<\/p>\n

However, big national developers do not agree that prices have crashed. \u201cThe day prices come down 20 per cent, it means buyers will not be able to afford it. This means gross domestic product is low, job insecurity is high, inflation and interest rates are also low. The food chain is disturbed,\u201d says Sanjay Dutt, managing director and chief executive officer, Tata Realty & Infrastructure.<\/p>\n

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Developers struggle for funds, prices crash, buyers wait Developers are worried about their loans. They want to sell, but buyers are in no mood to purchase,\u201d \u201cThere are good opportunities to buy now. But it is felt that prices will correct further,\u201d Faced with no movement in sales in the past three-odd months due to […]<\/p>","protected":false},"author":1,"featured_media":15951,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[679],"tags":[656,657,655,724],"class_list":["post-15949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-july-news-2020","tag-buyers-wait","tag-developers","tag-developers-struggle-for-funds","tag-prices-crash"],"yoast_head":"\nDevelopers struggle for funds, prices crash - PLY INSIGHT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plyinsight.com\/hi\/developers-struggle-for-funds-prices-crash\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Developers struggle for funds, prices crash - PLY INSIGHT\" \/>\n<meta property=\"og:description\" content=\"Developers struggle for funds, prices crash, buyers wait Developers are worried about their loans. They want to sell, but buyers are in no mood to purchase,\u201d \u201cThere are good opportunities to buy now. 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