No room for price cut:Builders

By Accommodation Times Bureau
Real estate developers are in no mood to follow finance minister call. Recently P.Chidambaram made point through bankers to developers to sell the unsold inventory at a lower price.
Arguing the point, builders do onot want to reduce the prices as they do not have margins, given the increasing input costs, high interest rates and taxes. Low margins is not leaving them with space. Giving the ample of reasons developers say that today input cost inflation, the margins is only about 10-15% down. There are lot of other factors like the price of cement has gone high, labour wages has also increased, steel prices have gone high contributing in for high price, interest rates are gone high.
Contrary to this analyst points out, that if developers want they could reduce prices atleast by 10%. According to report Mumbai alone has unsold 80,000 homes worth Rs. 70,000 crores. This shows that buyers are waiting for developers to reduce property prices which has risen 30% over last year.
Looking at all above aspects it can only stated that real estate market is very volatile.

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