Developers have become cautious of buying plots at high rates, as it can put them in financial trouble
According to a leading realty research firm, the property price fall is beginning to percolate down to land rates too.Witnessing a sharp fall to the tune of about 20 per cent, the firm maintains that plots today are being sold at extremely modest rates even as compared to times when the going was more speculative.
Flat rates are bound to fall even further, feel industry sources given that high land cost is the major culprit in raising the flat prices and in catapulting housing projects out of reach of the common man.
It has been the dizzying levels of flat and land rates which have sent realty beyond the reach of the common. The fall in land prices is seen as the first step towards turning housing into an affordable option for the buyer.
Also, once the new Development Control Rules come into play, the prices will fall even further. It is perceived that once Development Control (DC) Rules gets adopted in the Navi Mumbai and Thane area, rates will fall yet further.
The new DC rules dismiss the usual ornamental features like super built-up areas and parking etc., to hike up the rates. With the going clean and smooth in the days to follow, the rates too will come down.
Lower land prices has been received with delight by developers too. Maharashtra Chamber of Housing Industry (Navi Mumbai) secretary Manohar Shroff feels plot holders are expected to climb down from the astronomical land prices prevalent until recently.
“Earlier, there were huge demand for plots in Navi Mumbai, but now that demand has dried up drastically despite the airport project gathering steam.
“No longer will you find big land transactions taking place, with developers becoming cautious of buying plots at high rates, as it can put them in financial trouble. Compared with the earlier property rates, the present rates have come down by almost 20 percent,” he said.
A realty brokerage firm’s representative offered that the high interest rate and the market slowdown had adversely affected sale of plots.
As opposed to earlier times when developers were keen on buying huge sections of land as an investment, today they’re very reluctant to make transactions of that nature.
“With property prices finally coming under check, the home buyer will be under less stress and probably be able to have much better bargaining power,” feels realty consultant Ashok Shahani. Finally, the common man’s dream of having his own home appears to be coming within reach.