India gets ready for real estate sales going up in most tier1 and tier2 cities.

Heavy discount of 7 to 15% is being offered. "Housing prices are expected rise by five to eight per cent in the later part of this year and it might go up by as much as 15 per cent in certain micro markets," said Samantak Das, chief economist at property tracker Knight Frank India.

"With the backdrop of a stable government, coupled with high expectations of faster decision making and positive reforms, there is a positive outlook pertaining to the residential sector in terms of sales and launches," Das added.

The sector has been battling declining sales and higher inventory for two years. Developers have been hard-pressed on funds, with not many lenders willing to lend money to the sector. The Mumbai Metropolitan Region had an inventory of 53 months at the end of June and the National Capital Region of 45 months, says research firm Liases Foras. Hyderabad has an inventory of 47 months, Pune of 23 months and Chennai of 26 months. Bangalore has the least with 19 months. An ideal market is considered to maintain an inventory of eight months.

http://www.business-standard.com/article/companies/real-estate-developers-offer-discounts-to-push-sales-114082000019_1.html

Comments