The Orissa episode of the Credai has decided to reduce prices of their forthcoming housing projects by 5-10% in the coming 2 months in the wake of fall in raw material prices.

The strategy comes close on the heels of a call given by Credai to more than three thousand of its members in the country earlier this month to reduce prices to revitalize the falling consumer demand.

The price reduction in the forthcoming housing projects by the thirty-seven developers of Credai, Orissa will be effective from January 2009 after full development plan of the city, prepared by the IIT, Kharagpur is expected to come into force.

Following the price reduction, the residential real estate projects in the city will be available in the range of Rs 2,200-Rs 2,400 per square feet as against the existing rates of around Rs. 2,500 per square feet.

According to the CDP of Bhubaneswar, prepared by IIT, Kharagpur, about 30 lakh people need to be accommodated in the city in coming twenty years, as against the city’s present population of about thirteen lakh. To accommodate thirty lakh people in the city, an area of 9,286 acres has been earmarked for residential purposes in the new CDP.

Addressing the media, Mohammed Moquim, president of Credai, Orissa said “Credai Orissa has decided to reduce prices of all the upcoming housing projects by 5-10% to bring more affordability to the end customers in the wake of slide in raw material prices and falling prices of land.”

Further hw added that land prices are predicted to drop further by about 20 to 25% in the coming months and in such a scenario, Credai, Orissa will announce an additional cut in prices for the real estate projects by about 15-20%.