New Delhi, Oct 6 (Calcutta Tube) There has been a huge decline in the sale of flats and apartments across seven major cities of 25 major real estate developers in the first half of 2010-11, said a study conducted by an industry lobby.
However the second half of the year is likely to be positive due to the growth in the infrastructure sector, the study added.
‘The first half of 2010-11 witnessed a steep decline in the sale of flats and apartments. However revival in the real estate activities driven by infrastructure growth can accelerate both in the residential as well as commercial spaces,’ said D.S. Rawat, secretary general of the Associated Chambers of Commerce and Industry of India (Assocham).
According to the property dealers of seven metro cities — Delhi and NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Pune, the sale of flats has gone down in first half by over 40 percent as compared to the last year.
The study showed that the developers increased the prices of their existing projects. The prices of 2 BHK (bed room, hall, kitchen) apartments, which cost Rs.30 lakh, has been hiked to Rs.45 lakh.
The rise in the prices of steel and cement has also increased price of the property. During the last six months the steel prices had gone up by 30 percent, and cement prices increased by 15 percent.