Note ban shakes up realty sectors in Noida, Gr Noida, Gurgaon
As the demonetisation has hit hard, the real estate market which was already facing the slowdown, are coming up with various attractive schemes in satellite cities of Noida, Greater Noida and Gurgaon to attract homebuyers. Experts have claimed that the realtors, in order to avoid the situation, are expected to adopt some measures and illegal practices as well. They have claimed that efforts will be made to convert black money into white through the resale market which is bleeding owing to the demonetisation scheme.
Experts claim that the realtors, who had announced various schemes during Dussehra and Diwali this year, have reportedly extended the benefit for a short period. The customers are being offered more discounts on basic sale price (BSP) by almost all builders. “It is true that the market was in the slowdown in recent past and the latest move of the government has deepened the crisis. To avoid such circumstances, the companies have been mulling all options including the introduction of new schemes, the announcement of more offers, additional facilities, and the like,” said Indrish Gupta, co-founder of Noida Extension Flat Owners Welfare Association (NEFOWA).
The most important thing is that customers are being asked to deposit 40 to 50 per cent amount in cash.
“The market players have been targeting those who have unaccounted money as they are being offered to deposit a certain proportion in cash. The realtors, in order to avoid penal action, have been making drastic cuts in BSP. With the idea, the investors would feel comfortable to pay the nearly whole of the BSP in white and rest in cash,” said a market expert on condition of anonymity.
Builders, not willing to be named, said the announcement has hit the market badly and its impact will remain till the financial year closes.
“Majority of buyers prefer to pay up to 50 per cent money in cash but after the ban, no one is coming forward to pay cash. Even new buyers are showing lesser interest. There are many suppliers for whom we need to make payments in cash only. Their payments will be a headache now,” said a builder.
“Small and unorganised builders and secondary property market, especially in the high-value segment, are expected to be adversely impacted, while the primary market and the affordable housing segment may not see a major impact. Home and land prices could witness downward pressure, which would in turn help revive demand in the sluggish housing segment,” said the builder. As per the reports, Amit Oberoi, national director of Colliers International claims that the Delhi-NCR property markets are already reeling under low transaction volumes due to circle rates being higher than the market rate.
Demonetisation will only see demand for real estate here reduce even further.