Real estate developers in Mumbai have started to increase property prices in some pockets of Mumbai according R R Nair, chief executive of LIC Housing Finance, a subsidiary of Life Insurance Corporation (LIC). Areas like Ghatkopar, Thane and Andheri, are seeing prices rises after emerging unscathed from a severe liquidity crunch. “I think the correction (in real estate price) has almost bottomed out. In fact in some places I find that real estate developers have started increasing the rates as their cash flows improve,” said Nair.
The government had ensured easy flow of credit to the Indian real estate developers. Indian banks increased their exposure and also extended repayment period of loans to developers during 2008-09 to help them tide over liquidity crunch. “The demand for real estate has started picking up as people who had deferred their buying decision are now coming forward to buy homes,” said Nair.
Tags: Indian developers, LIC Housing Finance, Life Insurance Corporation (LIC), Mumbai property, Property in Mumbai
July 2nd, 2009 at 12:05 am
Yes, I too have noticed some price increase in property rate, it seems the effect of the promises of our finance minister. Every one is expecting some relief in various forms for builders and real estate investors. The ultimate gain will depend upon the overall improvement of financial condition of the country.