The housing market is showing trends peculiar to this day. Sales of home properties have almost halved compared with figures from previous years. One of the main reasons is that since the information technology (IT) boom is over, NRI just pump money into property. Despite this, developers have refrained from reducing prices to keep their heads above water.

The developers say that despite the drop in sales, there is little chance of real estate prices go down. In these conditions, because the prices of labor, sand and construction costs rising. The landowners are not cutting prices either. Therefore, it becomes feasible to cut rates more than 5-10%. Moreover, the cost of apartments will rise a bit more after the Bombay High Court recently lifted the stay in the recovery of service tax from customers.

The service rate is 2.5% of the total cost of ownership. This means that if the fixed cost is RS20 lakh, the customer has to pay R. 50,000 in the concept of service tax.

An example of these high prices can be seen in Mumbai’s Lower Wall area, which is now quickly becoming a hot spot for the rich. Homes in the area of textile factory, which used to be sold anywhere between 3,000 rupees ($ 66) per square foot to Rs. 6000 ($ 132) per square meter in the first part of this decade, are now priced between 15,000 rupees (330 dollars) and 30,000 rupees (660 dollars) per square meter and luxury homes. On the other hand, demand is declining because housing prices have gone beyond the reach of common man. There is a huge demand for residential properties, but people are waiting for prices to fall.

Thus, with sales falling by more than 50% compared to last year’s figures, the pressure is mounting on the developers to cut prices. Therefore, the discount on the property of anything between 10-15% could be expected soon.

The housing market is showing trends peculiar to this day. Sales of home properties have almost halved compared with figures from previous years. One of the main reasons is that since the information technology (IT) boom is over, NRI just pump money into property. Despite this, developers have refrained from reducing prices to keep their heads above water.

The developers say that despite the drop in sales, there is little chance of real estate prices go down. In these conditions, because the prices of labor, sand and construction costs rising. The landowners are not cutting prices either. Therefore, it becomes feasible to cut rates more than 5-10%. Moreover, the cost of apartments will rise a bit more after the Bombay High Court recently lifted the stay in the recovery of service tax from customers. The service rate is 2.5% of the total cost of ownership. This means that if the fixed cost is RS20 lakh, the customer has to pay R. 50,000 in the concept of service tax.

Jones Lang LaSalle Real Estate Services, a company in India (JLL) said that recently launched residential projects are experiencing an average 15% lower prices, especially in Delhi and Mumbai? oversupply in the market witnessed lots of pockets.

An example of these high prices can be seen in Mumbai’s Lower Wall area, which is now quickly becoming a hot spot for the rich. Homes in the area of textile factory, which used to be sold anywhere between 3,000 rupees ($ 66) per square foot to Rs. 6000 ($ 132) per square meter in the first part of this decade, are now priced between 15,000 rupees (330 dollars) and 30,000 rupees (660 dollars) per square meter and luxury homes.

On the other hand, demand is declining because housing prices have gone beyond the reach of common man. There is a huge demand for residential properties, but people are waiting for prices to fall. Thus, with sales falling by more than 50% compared to last year’s figures, the pressure is mounting on the developers to cut prices. Therefore, the discount on the property of anything between 10-15% could be expected soon.