The central bank's decision to put a cap on lending to the real estate and hous ing sector has created a setback to most upcoming, ongoing and completed projects. As many financial institutions have cut down on "unproductive" loans the real estate sector is facing problems. Those banks that offer loan facilities have imposed higher interest rates because of the economic problems and liquidity crisis. This has forced apartment developers and real estate companies to rethink strategies including prices and offering new schemes to allure customers in this adverse environment. For those looking to buy an apartment or home this could come as a good time to take advantage and negotiate the best deal. Downtown Housing Company Private Limited just last Friday launched their ambitious project Downtown Apartments. To mark the launch of their project at Khumaltar in Lalitpur, 700 meters away from Satdobato Chowk, Downtown is offering 1-bedroom apartments at Rs 17,99,000, their 2-bedroom apartments at Rs 29,99,000 and 3-bedroom apartments at Rs 39,99,000. The opening offer also has the attraction of zero per cent interest on EMI. Downtown offers 1, 2, 3 and 4 bedroom options along with penthouse and studio apartments. "No matter what regulations and directives the government imposes, the demand for housing and apartments in the valley will not decline," opined chairman of Downtown Housing Company, Min Man Shrestha stressing that the real estate sector has not been able to meet even the minimum demand of housing and apartments in terms of quantity.
"Since banks are discouraged to support our business ventures at the moment, we have come up with some offers to allure customers," said Shrestha stating that they have introduced schemes under which clients are provided with several concessions as per their down-payment system. According to him, they have a provision for 21, 12, 10 and 8 per cent discount on purchase of an apartment respectively with 100, 50, 40 and 30 percent down-payment. He also informed that they provide zero per cent interest on EMI for 42 months for those customers purchasing their apartments that ranges from Rs 18 lakhs to 1 crore 40 lakhs. According to him, out of 200 flats opened for booking, more than 50 per cent are already booked in a single week since the launch. "Till now, we have not offered any such schemes but we will seriously have to think of such things i the situation does not improve," said Navin Bhansali, director o Shangri La Housing, which has developed the Sun City Apartments The Sun City Apartments is a new luxurious and affordable apartment township. It is the first and the largest of its kind in the country with more than 1000 apartments in 10 towers. The property is located at Gothatar Kathmandu which oversees a wonderful landscape o the Kathmandu Valley and promises a green and environmen friendly feeling. Being close to the city it has easy access to major locations and necessities such as shopping malls, academic and health care facilities at a comfortable driving distance. Stating that their sales has dramatically declined, Bhansali informed, "Previously there used to be an average sale of around 30 units per month but this has come down to a couple of flats a month these days." He also informed tha they have been providing seven per cent discount on down-payment from the very beginning and would need to review the discoun offers if the situation did not improve. According to him, they have put 50 per cent of their project on hold while around 400 out of 500 flats are already booked. Lately launched, Mero City by Royal Orchid Developers has started bookings for their second phase project. Mero City is located 1.2 km from Satdobato at Hattiban, Lalitpur. Mero City claims to provide affordable housing and offers large and spacious apartments, starting with single bedroom apartments of 400 sq. ft. and going up to 3-bedroom apartments of 1100 sq. ft Prices start from Rs. 12, 99,000 Payment can be made in monthly installments of Rs. 12,000 at zero per cent interest. Like every other housing and real estate company Mero City is also suffering from the economic crisis to some extent bu it claims that the intensity of impact is comparatively low in thei case. In support of his claim, director of Royal Orchid, Prakas Bajracharya said, "Targeting a mass in any business would be safer than targeting a class," adding that they have been doing the same by developing apartments of reasonable price range. "We have been offering 36 and 60 months instalment schemes with minimum down-payment o 40 and 50 per cent respectively with zero per cent interest," informed Bajracharya. He added tha more than 80 per cent of their apartments are already booked According to him, the apartments could be bought within the range of Rs 13 to 38 lakhs depending on the size of the apartments.
THT