“If you can’t sell it, increase the price”
By Accommodation Times Bureau
By Dr Sanjay Chaturvedi
“If you can’t sell it, increase the price” these are the golden words of strategies the sellers are adopting through out the country. When a reputed name in Lower Parel could not sell it for Rs.35,000/- per sq.ft. he raised the bar to Rs.65,000/- per sq.ft. Buyers who were waiting to bring down the price, panic and purchased it for what ever price. In Goregaon E, a famous builder was selling row houses and bungalow. Out of 14 bungalow, non was selling and the price appreciation came from builder and the same which were not selling for Rs.2 cr, sold for Rs.8 cr in a fortnight.
The sheer pressure of Tug-of-war came heavily on buyers who are waiting to see the drop in prices. Sellers and builders are using such tricks to tell the buyers that nothing is available and rates have increased. By adopting such gimmicks, the rates have touched almost 800% since 2005-06 in many premium areas and likely see further.
Least Buyers want is increment in price. Waiting for drop. This situation is very well known to the builders and seller through out the country. Playing with fear psychology of buyers, builders know that the moment buyer comes to know about price increase instead of drop, he will jump and will become desperate.
Real Estate market have reached at un-affordable level in almost all the segments. Sellers and builders are using media and so called research houses who every day come out with some rosy picture in their research and having vested interests.
Places like Viman Nagar, Ulwe, Badlapur, Chakan, and many far flung suburbs have seen rates which are historically high without any reason. Away from city for almost 15 kms without any connectivity or CBD nearby, these places are souring in price simply because of the tactics of the builders.
Baseless claims for price appreciation when entire world is witnessing recession, buyers are living in fools paradise.