Realty body asks members to cut prices by up to 15%

Realty body asks members to cut prices by up to 15%

New Delhi: Realty industry body National Real Estate Development Council on Friday asked its members to cut rates on housing projects by up to 15% to revive sales.

Companies like Ansal API, Omaxe, Assotech and DLF have already agreed to cut prices, while Bangalore-based Sobha Developers has promised to evaluate slashing rates, NREDCO President Rohtas Goel told reporters.

The Council has asked members to cut sales price by 1-5% for existing projects, 5-10 % on future projects and 10-15% on affordable housing ranging between Rs3-20 lakh.

Earlier this week, Finance Minister P Chidambaram had asked the Indian industry to cut prices to revive sales and reduce inventories.

“We respect the concerns of the Finance Minister and we are ready for price cuts. On existing projects the prices have already fallen by 20-40% across the country," said Goel, who is also the Chairman and Managing Director of Omaxe.

In existing projects, there is no cushion on account of higher steel and cement prices that have been prevailing for the last one year.

NREDCO claims to have 500 members, including all big realty players.