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If you are a real estate developer, these are bad times that are most likely to get worse. Builders are throwing cash rebates at would-be home owners who are scared stiff by a fragile economy and tightened cash flows. They are advertising discounts that even they have a hard time comprehending. Cars (a builder is giving an Audi and another is gifting a Mercedes C class), Furniture (entire cost of furnishing a 3-bedroom flat – approximately Rs. 17 lacs) are some of the goodies that the worried builders are offering to lure customers, who by the way are still a very hesitant lot. Sunil Reddy of Hyderabad whose family has been in the construction business for over 4 decades says “we’ve never been this worried. We are losing money fast. And what worries’ me more are reports saying that things can only get worse.” Many builders are of the opinion that rampant speculation ruined an otherwise stable industry. Prices of land shot up without any consideration to the inherent value of the property concerned. "The investors who entered late will feel the maximum pain" said Yugendhar Ponnaluru another builder. Many small builders who entered into development agreements at exorbitant terms are forfeiting their advances and have decided not to go ahead with their projects.
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