Real estate down by up to 40% after demonetisation
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Real estate down by up to 40% after demonetisation

With numerous flats ready to move in but few takers and no money to pay the daily-wage labours, real estate developers are in quite a fix.

Real estate down by up to 40% after demonetisation

Demonetisation has had a debilitating effect on Noida's real estate industry, with property rates down by 30 to 40 per cent.

Most builders and property dealers in the city support the decision but are not happy with the implementation. Ever since demonetisation, sale and purchase of property has come to a standstill. Property dealers want the circle rates to be lowered to encourage homebuyers to purchase property.

"About 80 to 90 per cent of property is purchased through home loans," said Manoj Gaur, managing director of Gaursons India Limited. "Right after demonetisation, customers were facing a problem with registry of flats. Now that the government has allowed payment of registry fee through cheques, things have become quite easy for homebuyers. There is a drastic drop in the number of people enquiring about new property."

Ravi Mohan Sethi, chairman of Stellar Group, said the worst problem they were facing was paying daily-wage labours. "How can we pay such huge sums in cash when we ourselves are facing a severe cash crunch," said Sethi. "There are a bunch of projects that are ready to move in, but hardly anyone interested in buying property right now. People who booked their flats are asking us to refund the token money. In this scenario, we can't even think of starting a fresh project."

"The real estate market is down by 30 to 40 per cent," said JK Dogra, a property dealer based in Noida. "One good thing to come out of demonetisation is that property dealers have stopped quoting inflated rates and were now charging the actual property cost."