Lower Property Prices Of Unsold Units: Finance Minister

Although, none have opposed the finance minister’s suggestion yet, some bankers felt there is an urgent need of a real estate regulator to deal with malpractice in the sector, such as lack of transparency in project completion as well as the property size. In contrast, developers have shown unwillingness to reduce property prices due to increasing cost of construction.

T Chitty Babu, chairman and CEO of Akshaya Home, a property builder and the national secretary of CREDAI stated that "I don't think there's scope for a price cut given the kind of input and finance cost escalation we have already witnessed, unless we recover these costs along with requisite margin," reports Economic Times.

Chitty Babu further said that "Price rationalization can be achieved only by means of enhancing availability of funds for projects and single-window clearance. Cost reduction of 10-12 percent can be easily achieved if the government decides to introduce single-window clearance.”

"The need to reduce prices is more in metros. And any effort to reduce housing prices and revive the realty industry will surely help in kick-starting the economy as the sector is linked with several other sectors," as quoted by Economic Times.