The realty sector that has been accused of hitching its fortunes to illicit funds suffered a body blow after the government scrapped high-value banknotes in a blitz against black money and corruption.
As per news,Realty stocks ended 17.5% lower on Wednesday while property prices, according to conservative estimates, slumped about 25% in Delhi and Gurgaon after 500- and 1,000-rupee notes were pulled out of circulation. Some estimates put the price crash at 40%.
As per news,In south Delhi’s Chhattarpur, resale price of farmhouses fell from Rs 20 crore an acre on Tuesday to Rs 15 crore overnight. Likewise in Gurgaon, negotiations for a resale property in DLF Phase 1 fell from Rs 1.45 crore to Rs 90 lakh.
Experts said the fall in prices is short-term and will stabilise soon, bringing transparency to the sector and ending dubious cash transactions.
As per news, Anshuman Magazine of real estate services firm CBRE said, “In the long run, the move is likely to prove structurally positive for the real estate sector”.
Union urban development and housing minister Venkaiah Naidu held out hope to homebuyers.
“The decision will give huge relief to homebuyers. The inflated price of land will come down and make housing affordable for a large section of society.”
His colleague, transport minister Nitin Gadkari, said as much.
“The move will check the black money in real estate. Taxpayers need not panic. There will be teething trouble but things will even out eventually.”
The law is designed to protect millions of homebuyers facing harassment because of limited legal options at times of dispute, as regulator will oversee all future transactions and settle disputes.
Homebuyers would gain again from the government’s latest move that would do away with speculative pricing.
Small-time operators in the realty business will bleed from the crackdown on black money.