Property prices not affected by low demand
Despite low demand for real estate projects in Kochi, realtors deny to reduce prices hoping that the sector will soon recover from the current situation. The average price of double bedroom flats in the city varies from Rs 35 lakh to Rs 45 lakh.
Realtors say that majority of the apartment projects in Kochi were planned after the announcement of projects including Smart City and others.
Confederation of Real Estate Developers Associations of India (CREDAI) Kochi chapter president, M V Antony, alleged that when such mega projects failed to start on time, it took a beating on the real estate sector in the city.
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.
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 developers also allege shortage of labourers as another reason for delay in projects.
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Source: The Times of India
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