De­mon­eti­sa­tion to im­pact some high-end ar­eas

HT Estates - - FRONT PAGE - Van­dana Ram­nani

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

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