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Thursday, November 20, 2008

Sobha & Emaar: Price cuts to boost demand. Or not.

Sobha & Emaar: Price cuts to boost demand. Or not.November 20th, 2008DNA India: Can’t find the link, but the paper edition said that Sobha’s cutting apartment rates for most of its projectsi n Bangalore & Pune by 8%.Also, via Business Standard: Emaar MGF cuts home pricesEmaar MGF Land, the Indian unit of the West Asia’s largest real-estate developer, has cut prices of apartments to make them more affordable and tide over a slump in demand for higher-priced homes.The company is building apartments that cost between Rs 3000,000 and Rs 4000,000 near New Delhi and in Chandigarh ss market “We would have used the land to build more premium homes where margins are higher but we are utilising it to build homes for the mass market,’The words Sobha used were - “these price cuts should help propel demand”. I say - good luck with that, but I don’t think so. Cut rates by 40%, maybe then you have a hope.
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