Premium housing prices may fall soon on inventory pile-up

Investors can look forward to premium housing units getting cheaper by up to 20 per cent and gold prices rising significantly this festive season, says a financial advisory firm.

“We are expecting premium housing projects to get cheaper by up to 20 per cent… Potential buyers will not have to negotiate discounts, since realty companies are in all probability going to make such announcements,” a Delhi-based financial advisory firm InvestCare said in a statement.

The high inventories can soon impact cash-flow for realtors, adding that depending on the project, a cut up to 20 per cent could be possible.

“A cut in prices is definitely possible for premium housing units. If companies can cut prices, it will help bring back buyers to the market despite the weak environment”, its Managing Director Ajit Mishra said.

Company’s director Samar Vijay said sales of premium housing units have fallen sharply and companies are sitting on huge inventories. Since premium units fetch huge margins to builders they can afford to offer discounts to get rid of the inventories, he adds.

The situation is very different from mass market units, he said, adding since builders have a lot more financial muscle they can hold on to the prevailing high prices. They are open to negotiated deals with potential buyers, which can help cut down price for the buyer, InvestCare said.

On gold prices, it said: “Gold prices could inch up after the compromise announced on the US government shutdown and the continuing uncertainty there. In the event of the debt ceiling being raised, the US Fed will have to print more dollars, pushing gold prices up further.”

Since the US debt is rising and is likely to tread up further, we are confident that gold prices will go up substantially from current levels to around Rs 35,000 mark, he added.

Source: The Economic Times, Mumbai


About Saviour Builders

Saviour Builders Pvt. Ltd. is one of the leading real estate developers in Delhi NCR. The Saviour Group is the tantamount to deliver contemporary quality amid excellence and diverse innovation. It has emerged as one of the prominent entities in the real estate sector of India and is into residential, commercial and township projects in and around Delhi NCR. The Group devotes its complete dedication to reach higher and build better. With its immense hard work and loyalty, Saviour has accomplished the dream of delivering various tremendous infrastructures round the city. We intend to provide you with affordable houses in the Delhi NCR region. Some of its significant projects like Saviour Greenisle, Saviour Park, Saviour Street, Gaur City -1, Gaur City -2 and many more have created a new benchmark within the trade. Today, we have our presence at Noida, Noida Extension, Greater Noida (West) and Ghaziabad. We, at Saviour, are building homes based on trust and you are invited to build your future with us. We help you live your dream of living in style.

Posted on November 5, 2013, in Real Estate. Bookmark the permalink. Leave a comment.

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