Builders pay interest on loan EMI

PROPERTY SLOWDOWN: The national capital regions' property market is in a state of slump.

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New Delhi: Property developers are eager to boost their sales. This is a clear indication from the fact that players in the national capital region are pitching in as much as 50-65 per cent of the EMI burden on the home loan until possession is handed over to the buyer.

The national capital regions' property market is in a state of slump. And in order to boost dropping sales, NCR-based developers such as Supertech ltd, Eldeco and Mahagun are now trying to lure customers, by offering to share a part of home loan interest rates.

The construction companies are pitching in with 50-65 per cent share of the EMI, but only till the customer takes possession of the property. The scheme is available across NCR namely Indirapuram, Noida and Greater Noida areas.

“Interest rate burden up till possession is shard by lot of developers. We have also launched a scheme similar to that,” says Vikram Mishra ,VP (marketing & finance), Supertech ltd.

Volume of sales in the property market has dropped drastically. This in turn has caused a correction in property prices in the NCR. In areas such as Indirapuram, Gurgaon, Kundli and Sonepat real estate prices have dropped by as much as 10-30 per cent.

Many builders jumped on to ride the property boom in the national capital region, when it started. This resulted in excess supply of property. Industry watchers cite this as the prime reason why property price correction here. They say, rising interest rates have also played their part in the downslide.

The real estate boom in the NCR was mainly due to speculative investments in pre-launch schemes. But, following the clampdown by the Haryana government and a subsequent notice by the supreme court, investors are left in a lurch, and are exiting the market in a hurry, causing a slump in sales. Experts predict a further slide of at least 10 per cent in NCR's property prices over the next two-months.