‘sur­gi­cal strike’ on re­alty sec­tor

HT Estates - - FRONT PAGE -

Res­i­den­tial sec­tor: The pri­mary sales seg­ment dom­i­nated by end-users is likely to have lim­ited im­pact in metro cities, but will af­fect real es­tate deals and trans­ac­tions in Tier-2 and Tier-3 towns. Both land trans­ac­tions and the lux­ury market will see ma­jor price cor­rec­tion Com­mer­cial seg­ment This sec­tor is likely to wit­ness the max­i­mum im­pact post de­mon­eti­sa­tion as cash com­po­nent plays a much larger role in such trans­ac­tions. Real es­tate deal­ers peg cor­rec­tion in this market to be any­thing be­tween 25% and 30% De­mon­eti­sa­tion and RERA: De­mon­eti­sa­tion and RERA will help dis­ci­pline the sec­tor and in the long term see a “clean-up of non-se­ri­ous play­ers due to this ‘sur­gi­cal strike’ on the par­al­lel econ­omy,” says JLL In­dia Real es­tate in­vest­ment mar­kets: Projects could get stretched as in­for­mal sources of cap­i­tal may not be avail­able. This, in fact, spells more op­por­tu­ni­ties for in­sti­tu­tional cap­i­tal, ac­cord­ing to JLL In­dia anal­y­sis. FDI, pri­vate eq­uity and debt play­ers will find the market at­trac­tive Re­tail seg­ment: Re­tail­ers may see some im­pact on their busi­ness due to re­duced cash trans­ac­tions. The lux­ury seg­ment is likely to be hit due to his­tor­i­cally high in­ci­dence of black money ac­cep­tance in this seg­ment

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