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.