Housing 'hungama' amid economic crisis

The builder, however, is informing the customers about the amount of 1.5 million rupees loan, but not mentioning the tenure of the loan and the total amount to be paid by the customer along with mark-up.

If the annual mark-up is in the range of 18-20 per cent and the repayment tenure is 10 years, the buyer would have to pay 4.5 million rupees - 1.5 million rupees principal amount of loan and 3.0 million rupees mark-up.

Thus the actual price of the apartment would be 4.5 million. This price, however, would vary is the percentage of mark-up and repayment period is different.

The real estate experts said that a big proportion of remittances is expected to be invested into the new housing schemes and attractive plots. They said that the ongoing economic recession, rumours about bank defaults and collapse of stock market had made the investors and general public cautious and now the only option of investment with them for the real estate sector.

Seeing this situation a number of housing developing companies in the country have started new schemes to attract the unutilised money lying with the rich people and the investors.