Realty Market awaits Poll Results
“The property market is a key election financier, and considerable amounts of unaccounted money are pumped out from the real estate sector to fund elections. Before polls, developers are expected to provide liquidity to politicians so as to finance their campaigns. Many developers who are funding potential candidates are delaying their projects due to lack of liquidity,” said Ramesh Nair, COO, JLL India, a property consultancy firm.
“Undoubtedly, a new stable government will boost businesses and ignite investor confidence. If the incoming government is able to keep interest rates low and employment generation high, it will provide the platform for a far more stable and investment-friendly real estate market.”
Anand Gupta, housing expert and senior office bearer, Builders’ association of India (BAI), said, “Tune of sale, proposals for approval, inquiries to builders’ offices had gone down by 30-35 per cent even before election dates were announced. This government has disappointed both builders and buyers, and everyone wants new housing policies simplifying taxation issues, speedy approval of projects and housing loans etc. The day the new government takes this decision, the housing industry will get revitalised and property prices will also go down.”
An official from the stamp duty department on condition of anonymity said, “The volume of stamp duty paid and numbers of registration have gone down by 35 per cent in the first quarter of this calendar year as compared to the last calendar year.”
Meanwhile, Yashwant Dalal, president, Estate Agent Association of India (EAAI), said, “Only those transactions are taking place that were due since long or where builders or sellers have reduced the rates by one fourth. I had a client who had earlier struck a deal for `16 crore, but he backed out saying the rates were astronomical. Now, the builder has agreed to sell the same commercial premises for `12 crore.”
- by Anand Mishra for The Asian Age
0 comments