Demonetisation to impact some high-end areas
Delhi’s high-end market will also be affected by the government’s move to demonetise ₹ 500 and ₹ 1000, especially in areas where the circle rate is more than the market rate. Real estate prices in tony pockets of the Capital such as Vasant Vihar, South Extension, Anand Niketan, Greater Kailash, where there has been a spurt in the supply of builder floors, may see prices falling to more reasonable levels as attempts are made to ‘clean up’ the market.
Real estate experts say that there will be more of all cheque transactions in these markets. Some markets where the circle rates are more than the market rates may see prices correcting further due to lack of demand.
Vinod Sachdeva of Bhawani Estates, a realty firm in New Friends Colony Market says that he is expecting prices to correct by 20% to 25% going forward. “A 2,000 sq ft park- facing apartment priced at ₹ 7.5 crore is not selling even for ₹ 6.5 crore because the circle rates are higher than the market values, which means the stamp duty is very high. The circle rate in the area is around ₹ 7.75 lakh per sq m,” he says.
A broker in Vasant Vihar says that all-white deals have been picking up in the area. There is a lot of ready stock of apartments in the area which is mostly bought by businessmen who sell off their properties in places such as Punjabi Bagh or families within the area that have grown or expanded. “An apartment of 2,050 sq ft constructed on a 400 sq yard plot costs around ₹ 9 crore and this move is only going to encourage more people to buy through the all-cheque route,” he says.
In Golf Links, too, the market has remained sluggish for the last few years and prices have corrected by 25% to 30%. Property constructed on a 1,250 sq yard plot that was earlier available for ₹ 200 crore is now available for less than ₹ 150 crore, says a broker active in the area. The currency move will slow down the market further.
In the Lutyens Bungalow Zone (LBZ) too the circle rates are much higher t han t he market rates but the problem