Rates of residential units

Q: What is the status of rates of residential units in the second quarter?

Abhinandan Jain, Bangalore

26th September 2013

Real estate News in Bangalore

real estate market

residential market

residential units

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The realty market at present is very tight. This is evident from the fact that getting 30 crore from PE funds and banks is a hard nut to crack for small developers. I think this is the ideal time for money lenders to step in. Lack of money often compels a developer to discontinue with construction and that leads to non-payment of installment from the buyers. This is where money lenders come to the rescue.

Arup rajan, Mumbai

27th September 2013

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The main thing is that availing the services of a money lender calls for more problem for a developer since they charge steeply. Although some prime developers find it easy to bear the additional charge, small builders, however, go for a toss due to the additional burden by money lenders. :( :(

Builder in the country, at present are displeased with the status quo of the real estate market. Private banks do not offer loans to some builders, as a result, selling of few flats or taking loans at high interest is the only choice left. This is the only option left for builders to meet the ever-growing needs of the buyers.

Bijoy Singh, Bangalore

27th September 2013

I heard that the interest rates depend on the type of builder. Is it true?

Abhinandan Jain, Bangalore

26th September 2013

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Report from other sources confirm that interest rates depend on the type of builder. For an A-grade builder, the interest rate goes up by 2% every months while for a B-grade it can mount up to 4%. In addition to the high interest rates, builders are also required to pay a huge price. Money lenders keep the property documents in custody or make sure that some ownership is transferred in their name.

Partho Sen, Bangalore

26th September 2013

According to property consultants and housing indexes, around 22 out of 26 cities have witnessed a marginal decline of rates of residential units in the second quarter. Market research confirms that an unsold inventory of 6 lakh apartments in the nation have further put burden on the realty developers. Shooting money at high rates, however, may ward off the difficult situation, according to few developers, and keep the price stable till the economy regains its position.

Bijoy Singh, Bangalore

26th September 2013

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