Real Estate News – Page 7

Real Estate Sector seems to have taken a big hit from demonetisation, with builders seeing their sales drop in last three months and now holding their hopes on buyers coming to market with ‘white money’.

Buyers appear to be holding back their purchase plans on hopes that interest rate would fall and property prices would be fall post demonetisation in residential sector, which some see as a cleansing of a sector infected with prohibited funds. As per industry data, resale or secondary market, where maximum black money gets deposit, has been worst-affected as transaction almost dried up and barring some interest in trademark properties, due to lack of cash after fighting of old 500 and 1000 notes.

Though, many builders and property experts also said it is too early to say that black money has been completely removed from the sector though it has become especially difficult to effect cash transactions as of now. But previous year have been many policies with RERA (Real Estate Regulatory Act), Benami Properties Act and low circle rate, would be help in destroying black money in real estate sector to a great scope and improve the industry value.
Due to demonetisation, in primary and secondary market, were affected during November and December as buyers postponed their buying decisions not only in real estate but across the entire sector. Sales in the primary market have started to improve, with banks lowering interest rates on home loans, in NCR Market, which huge delay in projects completion. Real Estate Market will become totally transparent.

YEIDA (Yamuna Expressway Industrial Development Authority) has finally initiated offering possessions letters to plot allottees under residential plot scheme 2009. The first lot of 55 allottees has been issued possession letters by the Authority. Another 1600 plots owners will be handed over possession by mid-2017, another 4800 will receive possession next year.

Firstly, 55 plots, twenty owners of 4,000 square meter plots and thirty-five owners of 2,000 square meter plots in Yamuna Expressway. Authority is trying to hand over possession of 1633 plots, these plots measure 300 and 500 square meters and are located in 18 and 20 sector. Allottees are facing a delay in getting possession of their plots due to farmer agitations. Farmers of nearly 77 villages in the area have been agitating for a hiked compensation which is approved by state government in 2014.

YEIDA indicated about Rs 300 crore has already paid to farmers for land in sector 20 of the YEIDA area. The Authority is in the process of taking over possession of sector 18, which has nearly 7000 allotted plots. As and when acquisition and development of the plots are completed, the allottees will be handed over the possession of the same.