LOWER PRICE FOR REAL ESTATE

There is a very hue & cry about reduction in real estate prices. There are

many reports in the media that prices of property have come down but the

fact is that prices of properties are the same as of earlier. To come over

the problems of slow down in the demand of property some builders and

developers have started giving freebies like luxurious cars, free club

membership, etc. in case of premium apartments. But they have maintained

the prices of flats/plots. Unless property prices show visible corrections

in the listed prices of  existing  projects and lower prices of future

projects, the demand for  the real estate sector will not improve. Though

freebies are being given, the buyer is to pay more stamp duty for the

higher priced property.

Some leading banks have reduced rate of interest for home loans at the

instance of government authorities. It is a welcome step. But in view of

slump in the real estate sector and job loss in some sectors on account of

recession in the market, banks have made their norms more stringent for

home loans which have discouraged the home buyers.  Reduction in rate of

interest of  home loans will not fetch results till the financial

institutions come forward with liberal norms for grant of home loans.

If government authorities are interested in real sense to solve the

slackness in real estate sector then they should come forward with some

incentives like reduction/removal of value added tax, service tax, stamp

duty, etc. Government should frame the policy that sale and purchase will

be made by those property dealers/ consultants who are having government

license. This will reduce the influx of property dealers in the market

which will help in controlling the property prices.

Our web-site : http://www.zameen-zaidad.com hopes that on resorting to above said

measures, real estate sector will start boosting again.