Real estate prices to come down: HDFC Chairman

Mumbai, Jun 27 (UNI) Housing Development Finance Corporation (HDFC) Chairman Deepak Parekh today said the soaring real estate prices are not sustainable and will come down very soon.

''Real estate developers are offering various freebies to the consumers and it's a prelude to the reduction of prices,'' he said on the sidelines of the annual general meeting of HDFC in Mumbai.

However, he said there won't be a drastic fall in the prices but there will be a correction in the rates.

According to him, the Reserve Bank of India (RBI) has also tightened its grips on the foreign investments in real estate which further points towards the reduction of rates.

''Due to strict regulation, no housing finance these days can lend money against lands, for developers borrowing money from housing finance is becoming increasingly difficult,'' he said.

There are already indications of softening of real estate prices in certain areas like Bangalore, Gurgaon and Hydrabad where heavy construction is taking place.

Mr Parekh was also of the opinion that unless and until the soaring real estate prices comes down it will become difficult for real estate developers to sustain their market share in the country.

On low-cost housing, he said government should take the initiative in terms of acquiring cheaper land.

UNI