Realty prices to drop 35-50% in 2009: Orbit Corp

Published: March 20, 2009

Pujit Aggarwal, Managaing Director, Orbit Corporation,Real estate rates have fallen drastically in the past year. Prices in central Mumbai’s Worli and Lower Parel are down to Rs 12,000-18,000 per square foot as compared to Rs 35,000 per square foot a year ago. In Bandra, rates have fallen 20% to about Rs 15,000-25,000 per square foot.

Pujit Aggarwal, Managaing Director, Orbit Corporation, said that 50% of India’s retail commercial projects are on the backburner and added that he sees real estate prices lower by 35-50% in 2009.

Here is a verbatim transcript of the exclusive interview with Pujit Aggarwal.

Q: At what price point have you seen demand come through and what about the cost of land banks that had been built over to the overall real estate industry rather than just Orbit? Are real estate players making money or selling off at these prices because now they have just got to retain everything else and perhaps keep some cash with them?

A: No, I guess the strategy right now is to start disposing of material at whatever price it can be disposed of. Sales are taking place at a discount of 30-50% to the peak prices. So that is the rate at which sales are taking place all over India for projects that are either complete or are being completed in the next few months. The long-term projects are still a question mark in the eyes of the buyers because they are still getting something, which is affordable for them in the next few months and they are buying that.

Source: Money Control

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