Demonetisation: Housing prices to drop up to 30%, wiping Rs 8 lakh crore in value

[BUDDY]

Thanks Giving real estate deals  

 

 

 

 

 

HIGHLIGHTS

• Housing prices in 42 major cities across India could drop by up to 30% over 6-12 months after the demonetisation
• Maximum fall on total market valuation will be in Mumbai Rs 2,00,330 crore followed by Bangalore by Rs 99,983 crore and Gurgaon Rs 79,059 crore.

NEW DELHI: Housing prices in 42 major cities across India could drop by up to 30% over 6-12 months after the demonetisation of high-value notes, wiping out over Rs 8 lakh crore worth market value of residential properties sold and unsold by developers since 2008.

"In the aftermath of demonetisation impact on Indian real estate sector, market value of residential property of Rs 802,874 crore is expected to be wiped off in the next 6-12 months," PropEquity said in a statement.

PE Analytics owns and operates PropEquity which is an online subscription based real estate data and analytics platform covering over 83,650 projects of 22,202 developers across over 42 cities in India.

"According to PropEquity research, residential real estate valuation in the top 42 cities in India, sold and unsold, will take a tumble and fall up to 30% from Rs 39,55,044 crore by approx Rs 8,02,874 crore to Rs 31,52,170 crore," it added.

The market value is of 49,42,637 units, which are built-up ready, under construction and currently launched properties, available and sold since 2008 for 42 cities.
 

Demonetisation: I-T surveys real estate firms in Delhi-NCR

Maximum fall on total market valuation will be in Mumbai Rs 2,00,330 crore followed by Bangalore by Rs 99,983 crore and Gurgaon Rs 79,059 crore.

"Indian realty is now bracing for sub-prime level crisis, which is expected to deeply impact the core of unorganised real estate and black money," PropEquity said.

"We expect lot of secondary market transactions (resales) coming down in volume. For every five buyers out there, there is only one buyer willing to pay all-cheque. And usually, people want to take at least 20 to 30 percent of the amount in cash, but this will now go away for the time being," Samir Jasuja, CEO and Founder of PropEquity said.

 

 

 

"There will be almost a complete stop in resales in the coming weeks as this move will take sometime for real estate sector to absorb," he added.

 

 

 

PropEquity also said that there have been unprecedented transactions in last 15 days with lot of people trying to convert their unaccounted money into real estate.

Top Comment

I have few properties (all white). I am going to lose close to 30 Lakhs. I am ok with it. For eradicting black money and bring India on the path of development, I am ready to sacrifice bit of my wealth.Rik G

 

 

"But this will also mean that we can expect more formal and organised developers to weather this storm and will relatively be in a better position in the next 9-12 months," it said.

 

 

 

"In our view, there will be acute pain in the short-term but in the mid to long run it will be hugely beneficial for Indian realty as it will create lot of transparency," PropEquity said.

[SonaParv_522]

Asalu ammevaallu antha thakkuva ki ammuthunnara?

i think they will wait for few more days to sell. Ippudu ante cash flow leka evadoo konatledu. Once cash circulate ayithe it will go up. 

[kiladi bullodu]

jai balayya

[MRI]

hyderabad leda list lo??  

[mastercheif]

32 minutes ago, SonaParv_522 said:

Asalu ammevaallu antha thakkuva ki ammuthunnara?

i think they will wait for few more days to sell. Ippudu ante cash flow leka evadoo konatledu. Once cash circulate ayithe it will go up. 

slow market untundhi anukunta.. those who sell will sell cheap

[yomama]

[MRI]

ippatikey politicians tho kalisi kabja chestu developers ishta rajyam ayyindi.. deenitho valla lolli inka ekkuva avutundi..

[Bhai]

[perugu_vada]

Over hyped prices ki pencharu mari black money muutalu pettukuni

[Merabharathmahan]

Also govt. value and market value almost equal ga undela strict cheyali. Refistration fee 2.5% ala cheyali. 

[BUDDY]

3 minutes ago, Merabharathmahan said:

Also govt. value and market value almost equal ga undela strict cheyali. Refistration fee 2.5% ala cheyali. 

ala cheyaleru , u can sell it for higher prices if the buyers are willing to pay , u'll just have to pay tax on the entire value not just the govt value

[Bhai]

[TampaChinnodu]

1 hour ago, SonaParv_522 said:

Asalu ammevaallu antha thakkuva ki ammuthunnara?

i think they will wait for few more days to sell. Ippudu ante cash flow leka evadoo konatledu. Once cash circulate ayithe it will go up. 

It will take time to reflect in prices. As transactions dry up.

[TampaChinnodu]

1 hour ago, MRI said:

hyderabad leda list lo??  

Hyd lo kooda hearing same. 30 to 40% thakkuva ki quoting ani

[TampaChinnodu]

Dont buy any new properties unless you are getting atleast 30% discount