Mumabai: Coming hard on property developers, top mortgage lender HDFC’s Chairman Deepak Parekh has said they are unrelenting on pricing despite a growing inventory of unsold housing units.The eminent banker also asked the developers to shift their focus away from high-end luxury housing and said the “real demand is in the affordable housing segment”.
Parekh, known for his frank views, said many construction companies were hamstrung with over-leveraged balance sheets, while he also flagged delays in completion of projects because of developers trying to “deviate from standard building norms by paying to flout rules”.
Realtors’ apex body CREDAI’s National President Getamber Anand, however, rejected the criticism that pricing was unrealistic and developers were focused on luxury projects. “High-end housing is very small in volume and is being done only in some metros like Mumbai. In the rest of the country, price points are very realistic, in the range of Rs 3,500-5,500 per sq ft. There is no room for lowering this price range because input costs have gone up and there is also cost of interest. Moreover, there has been a slowdown in the economy in the past two years,” Anand said.