Realty sellers withdraw post ban

Mumbai: The residential real estate market has taken a hit after the November 8 demonetisation of the Rs 1,000 and Rs 500 notes.

“There have been hardly any sales in the residential sector in the last 40 days, whilst sellers have withdrawn from the resale market” said Mr Ashutosh Limaye, Jones Lang Lasalle.

Seller are selling only if they have no liquidity and need cash as all-white transactions see the tax component increasing. People, he said are putting off buying homes as they expect prices to fall. Presently prices are correcting.

Similarly there have not been transactions in sale of high street stores in the top eight cities in the secondary market as people are waiting for more clarity on prices.

In Mumbai, a premium residential complex in the suburbs has seen the price of  Rs 3.25 crore flat fall by Rs 60-70 lakhs. The case of rentals is even better as residents are paying just 5 per cent instead of the usual 10 per cent for two–year renewals, according to one of the residents.

Welcoming the move Mr Boman R. Irani, chairman and MD, Rustomjee & secretary, Credai National, said it will help to increase transparency in the sector and curb unaccounted cash transactions.

“With this move we await a softening of the home loan rates as there will be excess liquidity which can be a benefit to the home buyer. We foresee  enhanced confidence of global investors looking to invest in the sector,” he added.