After DLF price cut, other realty cos may rethink prices

Unitech said there is no scope for reduction for the 10,000 apartments under construction at the moment but they have new launches coming up in the next couple of months in Gurgaon, Noida, Kolkata and Chennai. Kolkata will launch at a discount of 5%, NCR Delhi will launch at a discounted rate of 15%. Chennai is a new market for them. Unitech also said that in resale of apartments, prices have come off by 15–20% although the average price of Unitech is still Rs 40 lakh. There is no announcement of reduction from Puravankara as such but it is reviewing all its price points and it’s very open to negotiations. Their average price, as we picked from the market in Bangalore is Rs 2,590/sq ft for a flat and that has come off 15–20% from its highs. The have two launches lined up in the next couple of months and the pricing will be Rs 12– 20 lakhs for 7, 00–1,000 sq ft apartments. Parsvanath say there is no scope of reduction of prices in the tier I market but they have reduced certain prices in the tier II market. In Noida the price is still Rs 2,800–3,000/sq.ft. Parsvnath says, its Exotica product in Noida is luxury product and prices cannot come down any further and at present it is commanding Rs 6,500 per sq ft. Mumbai based, Orbit Corporation has also announced 20% discount in Orbit Grande and Orbit Eternia in Central MumbaiCentral Mumbai.. They see a correction of 20–30% in South and The key takeaways from this are that if it is a ripple effect, as we may call it, developers are now admitting to a correction and negotiations. Some developers still say that there is no scope for any more reduction. All these new launches coming up in the next 2–3 months will definitely see some correction.