The Orissa chapter of the Confederation of Real Estate Developers Association of India (Credai) has decided to cut prices of their upcoming housing projects by five to ten per cent in the next two months in the wake of fall in raw material prices.
The move comes close on the heels of a call given by Credai to over 3,500 of its members in the country earlier this month to slash prices to revive the sagging consumer demand for real estate projects in the backdrop of the economic downturn.
The price cut in the upcoming housing projects by the 37 developers of Credai, Orissa will be effective from January next year after the comprehensive development plan of the city, prepared by the Indian Institute of Technology, Kharagpur is expected to come into force. Following the price cut, the residential real estate projects in the city will be available in the range of Rs 2,200-Rs 2,400 per sq ft as against the prevailing rates of around Rs 2,500 per sq ft.
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(From Left) Md Moquim, President And D. S Tripathy, Secretary, Credai Orissa
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According to the CDP of Bhubaneswar, prepared by IIT, Kharagpur, about 30 lakh people need to be accommodated in the city by 2030, as against the city’s present population of about 13 lakh. To accommodate 30 lakh people in the city, an area of 9,286 acres has been earmarked for residential purposes in the new CDP.
Addressing the media, Mohammed Moquim, president of Credai, Orissa said “Credai Orissa has decided to reduce prices of all the upcoming housing projects by five to ten per cent to bring more affordability to the end customers in the wake of slide in raw material prices and falling prices of land.
Land prices are expected to drop further by about 20 to 25 per cent in the coming months and in such a scenario, Credai, Orissa will announce a further cut in prices for the real estate projects by about 15-20 per cent, he added.
Speaking on the occasion, RN Kar, chairman of Credai, Orissa said that the major real estate developers in the country like DLF who had lined up projects for Orissa have kept their projects on hold owing to slump in demand. Talking on the impact on bookings for residential projects, DS Tripathy, secretary of Credai, Orissa said, “The bookings for residential projects in the city have not been impacted as much as the metropolitan cities but over the past two months, about 20 per cent of the bookings have been put on hold due to declining demand.”
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