Dont be surprised if your dream house comes a lot smaller now. Property developers may be cutting prices to get long-delayed projects off the ground but buyers get less house for their money. Who gains and how much?
Anurag Mathur, MD of real estate consultants Cushman & Wakefield, says the price of a residential apartment is fixed on the following basis: Cost of land, construction, government taxes and profit margin. While a developer can do nothing about land prices and taxes, he can certainly toy with profit margins and work on an effective construction cost, the benefits of which can be passed on to the end-user. This is what builders are doing now, says Mathur.
So, affordable housing has become the buzzword as the real estate sector seeks to revive its flagging fortunes. Many believe people looking to buy a flat for less than Rs 20 lakh stand to gain. Mathur points out that these buyers benefit from reduced home loan rates as well.
More : timesofindia.indiatimes.com
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