KOCHI: If you thought that the prices of flats in waterfront complexes here went south following the Maradu imbroglio and that you would be able to buy one on a hefty discount, you are in for a surprise and disappointment.
For, industry experts opine that such flats will remain pricey here as builders are unlikely to go for a price cut despite the visuals of the implosion of the Maradu highrises creating negative sentiments for waterfront projects.
At present, a three-bedroom flat in a premium waterfront apartment costs anywhere between Rs 1-crore to Rs 1.5 crore, while the same in a mid-level waterfront apartment projects costs Rs 75 lakh.
“In all ready projects regardless of location, builders have already made massive investments not only in the construction but also in obtaining various permits and clearances. They have also raised funds from banks. Hence, they are caught between a rock and a hard place and are unable to reduce the prices,” said Prashant Thakur, director and head (Research) at Anarock Property Consultants.
“Even in instances where a project has or may violate local regulations, reducing prices will not help the developer in selling the property as buyers who were interested previously will be aware that the project might be in legal trouble. There is little sense in slashing prices in the hope of creating more demand,” he said.
An executive of Tata Tritvam, Kochi’s premium waterfront real estate project, said six prospective buyers visited the site on Saturday. “Our office are functioning on Sunday too as we are getting a lot of enquiries. We feel people have become more aware when it comes to selecting waterfront apartment projects and are opting more for major builder brands due to the trust factor,” said Tata Tritvam deputy general manager Mahesh Papully.
“We are getting calls from people who are more of genuine end-user rather than considering the purchase as an investment,” he said.
Jacob Thomas, who runs a real estate broker firm in the city, said though people are looking for hefty discounts for purchasing flats in waterfront structures owing to the prevailing negative scenario, builders are not entertaining bargaining.
“The builders seem to sending a signal in the market that they are ready to hold on to their properties rather than selling them for reduced prices,” he said.
‘Little sense in slashing prices’
Prashant Thakur of Anarock Property Consultants said even in instances where a project has violated or may violate local regulations, reducing prices will not help the developer as buyers will be aware it might be in legal trouble.
He said there is little sense in slashing prices in the hope of creating more demand.
Mahesh Papully of Tata Tritvam said people have become more aware when it comes to selecting waterfront projects and are opting for major builders due to trust factor