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Pay In Cash And Get Up To 40 Per Cent Discount On Your Dream House'

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Alas, this is in India and not in the UK. I thought India was booming?

HYDERABAD: `Pay in cash and get up to 40 per cent discount on your dream house'. That's the tagline being adopted by several mid-sized real estate developers in the city these days. Reason: the mounting pressure from moneylenders. With builders compelled to cough up a whopping 3 per cent interest (on the loaned amount) to `financiers' every month, sources claim that they have no choice but to sell their property at throwaway prices.

"Many builders are reeling under a severe liquidity crunch due to the slow movement in the market," explained an industry analyst pointing out how most small-banner construction firms in Hyderabad heavily depend on moneylenders for their projects. Irrespective of the fact that sales have failed to pick-up post recession, moneylenders have not dropped their interest rates and continue to charge as much as 2-2.5 per cent monthly interest from developers, with some even quoting a high 3 per cent. "It is this pressure of paying the monthly interest that has now driven realtors to resort to such desperate measures. They are going all out to slash their rates to lure a customer who is willing to make a cash payment. This is only to ensure that they can at least make enough money to pay their regular instalments," said a real estate consultant highlighting how this is seen more in the peripheral areas of the city.

Read more: Desperate developers go for big discounts - The Times of India


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