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Indian Builders Lower Sights

Wall Street Journal Original article ›

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Unitech, DLF, and other builders in India, are switching to affordable housing to meet demand at lower prices of $27000 to $100,000 for a one or two bedroom apartment. This shift means lower margins in the 30 percent range compared to earlier 70 percent margins of DLF. It can make up for profits in volume as there is a growing demand for affordable housing, and prices of raw materials and interest rates are coming down. Buyers are looking for even better prices and some are holding back because of uncertainty about the economy and jobs.


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