Gone are the days when builders paid a premium price for beautiful waterfront land parcels in Ernakulam.
The shock reverberations of the Maradu controversy continue to impact the prospects of the realty sector in the commercial capital of Kerala. According to estimates prepared by the Kochi chapter of the Confederation of Real Estate Developers Associations (CREDAI), the demand for attractive waterfront land parcels has hit an all-time low in the aftermath of the Supreme Court directive to demolish four apartment buildings at Maradu.
“No builder is showing interest in waterfront land parcels for setting up residential apartment complexes after the Maradu fiasco. Why should one get into trouble by spending from his own pocket for such a poor business move in these times?” asked Ravi Jacob, president, CREDAI, Kochi.
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Maintaining that the Maradu episode has also hit the confidence levels of officials of various local bodies, Mr. Jacob said no one was signing papers pertaining to real estate projects, fearing that they might land in the soup later. “There is an overall erosion of confidence among bureaucrats,” he added.
Meanwhile, buyer sentiment remains sluggish as people do not close deals and continue to be hesitant to acquire apartments. Real estate representatives pointed out that buyers were also doubtful of the government’s position on various policy matters related to the real estate sector.
“Despite our repeated requests, the government is yet to recall the anti-industry provisions under the amended Kerala Municipality and Panchayat Building Rules. The square feet rate will go up by ₹1,000 to ₹1,200 if the authorities fail to drop the amendments. The realty sector will not be able to undertake new projects in such a scenario,” they said.
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Builders are of the view that they may have to work on a plan to boost buyer confidence after the demolition of the apartments. “It may take a few days more as images of the Maradu implosion will now remain for at least 10 days,” they said.