Credai Orissa Announces Price Reduction for Upcoming Housing Projects
In response to the decline in raw material prices, the Orissa chapter of the Confederation of Real Estate Developers' Associations of India (Credai) has decided to reduce prices of its forthcoming housing projects by 5-10% over the next two months.
Strategic Move to Boost Demand
This move follows a nationwide call by Credai to its over 3,000 members to decrease prices and revitalize dwindling consumer demand. The price reduction, effective from January 2009, will be implemented after the full development plan for Bhubaneswar, prepared by IIT Kharagpur, comes into force.
Impact on Residential Real Estate Prices
Post-price reduction, residential projects in the city are expected to be priced between Rs 2,200-Rs 2,400 per square foot, down from the current rate of approximately Rs 2,500 per square foot.
Bhubaneswar's Growth Projections
According to the Comprehensive Development Plan (CDP) for Bhubaneswar, the city needs to accommodate around 30 lakh people over the next twenty years, up from its current population of 13 lakh. To achieve this, an area of 9,286 acres has been earmarked for residential purposes in the new CDP.
Developer's Perspective
Mohammed Moquim, President of Credai, Orissa, stated, "Credai Orissa has decided to reduce prices of all upcoming housing projects by 5-10% to enhance affordability for end customers, considering the slide in raw material prices and falling land prices."
Future Price Adjustments
Moquim further indicated that with land prices anticipated to drop by an additional 20-25% in the coming months, Credai, Orissa is prepared to announce another price cut of about 15-20% for its real estate projects.