March 21, 2009

Changing Scenario

In a recent article in Property Plus, The Hindu -- it is stated that:

“The current economic slowdown has changed the housing market scenario significantly and has forced home buyer sand developers to re-orient their strategies.

Buyers are now getting calculative and want to probe factors such as the falling prices of cement and steel, construction cost and reduction in service tax and want to know how these are reflected in offers. Buyers are also now examining the actual carpet area that they get in comparison to the area that they pay for.

In addition buyers are looking at the terms of payment and penalties carefully and want a fair deal. They ask for compensation for any delay in delivery of the completed apartment commensurate with the loss of income or the rent. Some have even started demanding that payments be linked to the construction stage, and not make it time bound, as they want cash flow to reflect progress of construction.”

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