KOCHI: Even as many of the newly constructed apartments in the city remain unoccupied with promoters failing to attract buyers, builders are refusing to bring down prices in the hope that city's real estate sector will soon witness a revival.
Majority of the apartment projects in the city were planned following the announcement of projects including Smart City and others, according to the players in the city's real estate sector. Their target group was those who were expected migrate to the city with the materialization of these high profile projects. But delay in the execution of those projects affected these expectations, said industry insiders.
"It is true that when such mega projects failed to take off on time, it took a beating on the real estate sector in the city," said Confederation of Real Estate Developers Associations of India (CREDAI) Kochi chapter president M V Antony.
Despite decline in demand, price of the flats in the city remain steady for more than a year. The average price of double bedroom flats varies from Rs 35 lakh to Rs 45 lakh. Antony said that it was not viable for the firms to sell apartments at lower price as it would become a financial burden for many of them. "Present rate is an attractive one and it is not possible for firms to sell apartments at lower prices due to high land price and sky rocketing of the input cost."
The industry was hoping that there would be a revival in demand with the decline in the value of rupee, but high interest rate kept non-resident Indians (NRIs) away from investing in the realty sector, and thereby dashing the hopes of the sector.
The sale is low in the recent months compared to the same period in the previous years. It has also resulted in the delay of the completion of several projects. Players in the real estate sector said that the delay was a result of the buyers not making payments on time.
They also cited shortage of labourers as the reason for delay in projects.
Source:
timesofindia.indiatimes.com
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