After government’s demonetisation move the real estate market has been hit with huge losses, as the investment declined by almost 50 per cent. But when the real estate sector was gaining, this market was again hit by a surgical strike by the government, that is the Real Estate Act, or better known as RERA. But the latest reports have shown that there around 1 lakh unsold apartments over the past in Mumbai Metropolitan Region (MMR), which takes the total unsold inventory to Rs 2.5 lakh crore.
According to a Financial Express report, the apartments which are unsold are priced between Rs 90-95 lakh, for which, seeing today’s monetary conditions, there not many takers. There was anticipation that the prices of real estate will drop down following the RERA or Real Estate (Regulation and Development) Act, but people were disappointed with no relief in apartments prices.
Pankaj Kapoor, MD, Liases Foras told Financial Express, “At the current pace, it could take nearly five years to clear the unsold stock.”
According to Liases Foras data, even small and medium-sized apartments up to 1,000 sq ft burn a hole in the buyer’s pocket with the cost being Rs 13,000 per sq ft. Nonetheless, builders pushed property sales before RERA rollout and about 8,000 more properties were sold in FY17 than FY16.
But, with RERA expected to cut down on delays by bringing in more accountability, buyers are more inclined towards the more reasonably priced under-construction projects.
Previously, lengthy delays in completion of buildings used to drive people to buy apartments which were ready to move in. But, as RERA is supposed to cut down on delays, buyers might go for under-construction projects which are generally priced at a lower level.
By: FPJ Web Desk
Courtesy: http://www.freepressjournal.in/ published on July 04, 2017