NEW DELHI: A survey by leading property website Magicbricks has revealed that there is little evidence of any major price correction in the secondary or resale real estate market after demonetisation, or ban on old currency notes. This goes against earlier reports saying otherwise.
The overall realty market scenario, however, remains weak as a direct impact of demonetisation.
The survey which takes into account the immediate quarter of demonetisation suggests that despite cash ban the much expected landslide price depreciation of 5-20% did not materialise for the lack of transaction volumes in the market and stickiness to price from the seller side.
Ready-to-move-in properties continue to command a premium over under construction properties, according to the survey. However, the price of such properties has seen a comparative decline. At the same time, price of under construction properties has seen a marginal increment, net result being closing of gap between price of ready-to-move-in and under construction properties.
The report also states that the majority of consumer preference in the residential market is in the range of Rs 3,000-6,000 per sq ft. Given the fact that price in segment is likely to remain stagnant, the current market scenario is likely to persist for at least over next 3-6 months. More than 50% of 750+ localities across 14 cities fall within this price range.
The survey alo says that major suburban and core city localities in mid to higher budget segments have done relatively well in terms of quarterly price gain as compared to peripheral areas, especially in Chennai and Pune.
“The latest PropIndex reveals that the South Indian cities of Bengaluru, Hyderabad and Chennai have witnessed price gain of 1.5% while prices in the National Capital Region (NCR) fell by 1% during the quarter. Among NCR cities, Delhi has undergone a maximum price decline across all segments, around 22% which is the highest in the country for 3.5 years. As the real estate sector goes through a transitional phase with the introduction of RERA, GST, Benami Act and REITs, a tool like PropIndex becomes a key indicator that will help consumers get a fair idea about the changing times,” said Sudhir Pai, CEO, Magicbricks.
PropIndex shows that Delhi’s realty market continues its downward movement, the worst in the country. Gurgaon follows its footsteps due to problems of unsold inventory, project delays and stagnant prices. In the west, Mumbai, except for the top- budget bracket of Rs 35,000+ per sq.ft, has witnessed a price decline in most of the localities.