REALTY BOOMS IN INDIA

Prices Thaw as realty booms
Action in the realty estate sector has again picked up. The sharp spike construction activities has also, to large extent, contributing in containing the price rise in the sector in the last six another. Another factor, which has contributing in increasing the construction activities, is the government s decision to increase the number of units (density) and proportions of built up area on a given land , which has helped developers in selling houses at affordable rates. As the interest rate on home loan is also at a competitive rate, a middle class person having a household income of Rs 25,000 per month can now afford to buy a house. A sharp spike in construction activity coupled with a competitive home loan rate has come as a boon for middle class end users , says ,prabhakar sinha
R.K ARORA, CMD OF supertech, says that land cost constitutes almost 50% of the total cost of a house in the NCR and that realaxation in floor area ratio (FAR) helped developed in bringing down the selling price of apartments in their new projects the housing authority in uttarpradesh in creased both the (FAR) and number of units (density) allowed to be constructed in a given area .Earlier ,the government had sed the FAR but had left the density unchanged Because of the increased FAR developers are allowed to construct more but as the increased FAR ,developers are allowed to construct more but as the density was left unchanged ,the number of units condtruct in an area remained the same ,that means developers would have had to either construct in an area remained the same , that means struct bigger sized apartments or leave the allowed FAR unused this did not help them in bringing down the cost of apartments
But now ,as the density has also been increased by over 50%, the cost of apartments has come down .this has made developers sell apartment at lower prices, and also at a profit.
Manoj kumar Ray director of gardenia ,says that government polices of apartments ,which increased the demand in the market , the increased pace of infrastructure development in the NCR owing to the October 2010 commonwealth games has also contributed to the buzz in the sector ,the widening of NATIONALHIGH WAY 24 and the construction of bridges across hindon to connect noida and greater noida have increased connectivity to large area and brought them within easy commutable distance from the central part of delhi and noida MORE information visit http://www.rentgurgaon.com