Real estate companies are likely to slash prices to boost demand in reality business. It is to be noted that Union Finance minister, P Chidambaram recently asked industry to slash prices so that the desired targets of industrial growth can be achieved.

Realtors seem to get the message and are expected to decide on price slash within few days. Real estate sector is facing tough situation amid ongoing world economic crisis. Home Buyers have declined in number as banks are offering home loans at high rates, which are not affordable for Indian working and business class.

The ongoing world economic crisis has widely impacted the real estate sector. The largest real estate company in India, DLF has announced various measures to cut costs and reduce unnecessary expenses. DLF would terminate services of some of company's employees and stop working on some of its projects.

Unitech and Parsvnath Developers also retrenched their staff last month in line with cost cutting drive due to global meltdown.

At the ongoing World Economic Forum-India Economic Summit, Arun Nanda, executive director (infrastructure development sector) of Mahindra and Mahindra, said, "Affordable housing market has a huge demand with consumers just sitting on the fence and waiting to get a clearer picture of the ongoing financial crisis.” 

The Mahindra group has a wholly-owned subsidiary, Mahindra Lifespace Developers Ltd, operating in the infrastructure development segment. 

New York  - The crisis in the US real estate market is having an ever starker impact on Home Depot, the world's largest home improvement chain.

Washington

Demolition was off late seen as the only consequence of illegal construction, but the cabinet sub-committee on Sakrama, for the regularization of unauthorized constructions has opted for a more viable option. It has favored relaxing the upper limit of violation, currently 50% and reducing the penalty for irregularization substantially.

There may be more than one lakh buildings in Bangalore which have violated the building rules beyond 50 per cent and it will not be possible to demolish all of them. Furthermore, as most of these structures belong to poor and lower middle class people there was a feeling that penalty is very high, hence, a proposal for a substantial reduction in penalty for smaller sites.