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Excon, Excon 2011 Biggest Construction Equipment Trade fair India.

 
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Real Estate  

Landowners bank on revival of real estate sector

 
6/23/2009 3:38:00 PM

Mumbai, June (EPC News): Though property prices have dropped nearly 30% in almost all parts of Mumbai, land prices are not keeping pace with this fall.

Developers and builders attribute this to the wait-and-watch attitude of landowners. Pravin Doshi, President, Maharashtra Chamber of Housing Industry, said that most of them were banking on a revival of the real estate sector to shore up their gains.

As for affordable housing, Mr Doshi said just as the price line had not been defined so was the apartment size. A three BHK (bedroom-hall-kitchen) flat in far-flung Dahisar or Virar, however competitive the price, would not attract buyers. Similarly, a man in the plush Napean Sea Road area would shun a one BHK apartment. The product size is eventually location-specific.


On low-cost housing, especially slum rehabilitation projects, he said many were getting delayed thanks to the long, drawn out procedures for project clearance. Developers were also burdened with issues relating to premium payment, the mandatory bank guarantee to ensure project completion.

 

 
 
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