Some developers have started pushing apartment prices somewhat north after an anxious few months in which they jumped to affordable homes in a bit to shore up demand.
Builders are walking a tightrope between sustaining demand and tweaking up profit margins, but analysts say it is too early for prices to tighten.
The country’s second largest realtor Unitech has marginally increased prices of its ongoing residential projects in Gurgaon by up to 2 per cent. “We have increased per square ft prices for our under construction projects in Gurgaon by Rs 50. We will be prudently increasing prices,” Sanjay Chandra, managing director, Unitech said.
Emaar MGF, after having sold out a 300 independent floors at Gurgaon’s Sector 65 with a starting price of Rs. 42 lakh, claims to have sold 90 per cent of 400 more –at a base price of Rs. 44 lakh, indicating a push-up in prices.
Delhi-based Parsvnath Limited has jacked up its luxury apartment price in North Delhi’s ‘La Tropicana’ project by more than 10 per cent from Rs. 9,000 per square foot last September to Rs. 10,000 now. But 40 per cent of the flat bookings are yet unsold.
“We expect prices to go up further,” Pradeep Jain, chairman, Parsvnath Ltd said.
“Market sentiment has definitely improved but if developers are contemplating price hikes, the move will go against them as demand has just begun to rise,” Santosh Kumar, chief executive officer, operations at real estate consultancy Jones Lang La Salle Meghraj told Hindustan Times.