Punjab builders reject realty body’s call to reduce prices

The Financial Express

Punjab builders reject realty body’s call to reduce prices
The Financial Express
Posted: 2008-11-26 23:01:38+05:30 IST
Updated: Nov 26, 2008 at 2301 hrs IST
Builders in Punjab on Tuesday said they can reduce the prices of upcoming projects by five to 10% to revive the demand, but expressed inability to cut the rates of already constructed projects due to high input costs.
“We cannot bring down the prices of already constructed projects but yes in the upcoming projects, the prices could be brought down at least by 5% to 10%,” Punjab Builders and Developers Association president Anil Chopra said.
The country’s realty industry body National Real Estate Development Council had last week asked its members to slash the prices of real estate projects by 15% to revive the demand.
Big builders like OMAXE, Ansal and DLF have echoed the suggestion of the NREDCO followed by an appeal by PM Manmohan Singh, but PBDA cited high cost of raw material as reason for its inability to reduce the selling price of its already constructed projects. Chopra said properties that cost more than Rs 20 lakh cannot be reduced further as double cost of construction have been incurred and it is not possible to decrease the prices to incur huge loss in the projects.
—PTI