There will be a slump in the real estate market it is reported. The notes ban has brought in all the expected crisis in the resale of property in Hyderabad and other metros. The registration offices are in trouble having no business since last one month and it is reported that the trend will continue.
Apart from exchange of notes, the black money circulation has stopped for the time being. If one has to purchase the land or a flat it has to be in white and a majority of them would not like the buy the property all in white.
“Indian realty is now bracing for sub-prime level crisis, which is expected to deeply impact the core of unorganised real estate and black money,” PropEquity said.
The real estate business men do not know how to come out of this situation. People want to sell the property at the earliest as they expect further slump in the market in the coming 6 to 12 months. But the purchasers are very few in numbers.
People expect lot of secondary market transactions coming down in volume. For every five buyers out there, there is only one buyer willing to pay all-cheque.
And usually, people want to take at least 20 to 30 percent of the amount in cash, but this will now go away for the time being,” Samir Jasuja, CEO and Founder of PropEquity said.
“There will be almost a complete stop in resales in the coming weeks as this move will take sometime for real estate sector to absorb,” he added.
PropEquity also said that there have been unprecedented transactions in last 15 days with lot of people trying to convert their unaccounted money into real estate.
“But this will also mean that we can expect more formal and organised developers to weather this storm and will relatively be in a better position in the next 9-12 months,” it said.
“In our view, there will be acute pain in the short-term but in the mid to long run it will be hugely beneficial for Indian realty as it will create lot of transparency,” PropEquity said.
