The real estate market here has been hit in the wake of demonetisation as prices have come down by 30 per cent to 40 per cent since November 8.
Yet, no developer is openly admitting about the slump in prices of open sites/houses/residential and commercial flats. They continue to quote the earlier prices in the hope that the cash flow would improve soon. But, they admit that many buyers are not coming forward to invest in real estate for being accounted for their transactions.
Prices in the real estate sector have crashed drastically, says a prominent developer. For instance, the price for a 30ft x 40ft housing site, which was sold for nearly Rs. 34 lakh to Rs.35 lakh til recently, has gone down to Rs.24 lakh now.
A latest research study conducted jointly by the Belagavi chapter of the Confederation of Real Estate Developers’ Associations of India and the Institute of Management Education & Research on residential projects that were completed last year and those under construction provides information about the status of the real estate sector in the city.
As per the report made available to the media, 110 residential apartment projects were surveyed. As many as 2,245 residential units were completed last year. Incomplete projects since 2015 are expected to be completed by 2018-end.
As many as 1,525 units are under construction of which 698 flats had been booked which account for about 46 per cent of the total number. As many as 720 flats were completed as on June this year of which 41 per cent have remained unsold.
“We have not slashed the prices although the buyers are offering 20 per cent to 30 per cent less than our quoted price,” a developer told The Hindu here on Wednesday.
However, developers are looking forward to banks cutting down home loan rates from 2017-18 in the wake of the money being deposited in banks following demonetisation. They expect that it will prompt many to buy houses.
