Dear
Readers,
Please find Report on
Demonetization Effects on Real estate market & overall view after study
Developer & Broker survey.
Demonetization
As per my point of view
on Demonetization, there are 7 major factors, which affect Real Estates Sector
there are as follows-
*Developers/Builder
* Broker/ Corporate
Broker
*Banks/Finance
Intuitions
*Government
*Consumers
*End-user
*Investors
Developers/Builder:-
As most of developer in
all category (A, B & C Grad) a long time back, they stop taking Black money
from Customer. However, in many case if offer or proposal made by anyone Party
(Customer or Developer) it is acceptable after understanding. Therefore, there
is no any major impact on Demonetization on Developers Directly. Even some
developers are happy due to demonetization & RERA act as small &
unorganized builder will get out from race.
Payment and Subvention Schemes
Some developers come up
with deferred payment and Subvention Schemes ways to keep business moving,
- Runwal Group offering
Price-Protection assurance scheme for three of its projects Runwal Bliss
and Runwal Forest in Kanjurmarg, and Runwal Forest in Mulund. In this
scheme if Prices of the said projects go up due to market forces after
anyone purchases flat the investment value will grow and it rare event
that the project price falls after the purchase, the company will adjust
the apartment cost as per the reduced price. This offer is aimed t win-win
situation for the buyer this offer is Valid Till 31st May 2017. They are
giving in written too.
- Price-Protection assurance
scheme: This Scheme is new in Market so other developer will soon might be
adapt this scheme.
- The same offer giving by Lodha
Developer & Vihang too in Codename Amara-Megastar Project at Thane
Kolshet & zero booking offers where booking amount will adjust in EMI
& Vihang Vermont.
- No change in bank scheme still
2:95:3; 5:95; 10:10:80; 10:10:40:40; 10:90& 20:80 like scheme are
available at different developers with customer made plan too & there
is fit out payment plan also were just pay Booking amount or 10 or
20% & rest after possession .
- Normal Offer is there like Off
on Stamp duty & Reg and service tax & VAT too.
- There is also Government
Subsidy Provide by many developers at Budget Home projects or outskirt
location-Subsidy Name Pradhan Mantri Awas Yojana with min Dox. from Clint for Loan.
However, as per my
concern ticket size for units is anyhow between 35lac to 2cr in Thane &
Dombivali location, which is a mid-category-segment so is not huge Impact of
Demonetization in this location .
Even if some major
change in Government polices they all have capacity to hold market for long
time up to 1 year. After talking with various developer they openly say on an
average they achieving they monthly target but most booking done by End-user
(Point to be noted).
As fair as Commercial
Projects concerns there will be a minimum impact on office/industrial leasing
and transactions business because, cash components do not play a significant
role in such transactions.
A -Grade Developers- They all are well organized, even after Demonetization there is
see that Piramal Realty developer launching new tower in Piramal Vaikunth
project, same like Runwal too at Kanjurmarg Location come up with Runwal
Divine project with good Subvention Schemes. Even other developer there is no
any cost cutting reading Promotions of their projects, everything going smooth
as before was.
Even they say after
demonetization local broker also giving more preference to Primary projects as
compare to Resale once (Deal not done but lots of Inquire generate from Broker
end).
B- Grade Developers -There is seen that asking rate of many developer is certain
amount but there is a huge negotiation for booking. For instance, Projects Name
Toyko Bay Ph-1 & 2 of Puranik Builders, Rate is Rs.7500psf but developer is
negation up to 6800psf, which are huge different (up to Rs. 700psf) there are
some scenario like this but only this because of Demonetization is not
true, there is multiple reason for this.
C -Grade Developers -Most of Developers doing business in joint Ventures so
there is not much impact of demonetization.
Broker/ Corporate Broker Point:-
Proptiger/ IndiaBulls
(IDSL)/IIFL - There is less footfall from customer end but overall is good,
they experience investor is hold booking for 1-2 months as government
announce something new for Real Estates.
Oxyzen (Mostly Deal into
Plots outskirt):- They are sole selling consultant having +20 projects in Neral
to Karjat Location as per him there is less demand in flats as compares to plot
in outskirt location such as Neral,Karjat, Shahpur & Murbad .
Spaces India: - They are
sole selling consultant having +25 projects in Panvel & Nearby location
there is no issue of footfall but in term of booking Clint are preferred to
wait for 30th Dec as Government announce some new polices for
Real Estate.
Individual Broker/Agents
Points of View: - As per him after Demonetization, there is impact is on Resale
& somehow on Rental property. There is observing in fewer Footfalls for
this product.
Banks/Finance Intuitions: - As last Quarter RBI is not cut CRR, after
that in market there is expectation that in next Quarter they cut CRR by 50BSP
Point. As more & more cash deposits in bank by public after demonetization,
liquidly of case in bank become higher than they might be cut Rate of interest
in home loan.
Government: - Government is just Analysing after 30th Dec they
may come up with new polices.
Consumers – People are deferring buying decisions, as the public perception
is that prices will crash. Therefore, they just wait for government
announcement.
Investors:
- Investors are too much confused as Government are coming with lots of scheme
as Benami property, GST & Property Act etc. So they just hold for some time
until government announce.
End-user As
per my experience, there is always End-user in market, whatever situation is
there whatever government polices is going on but end-user always buys their
property.
Thanks
Qualitias
Team