Real estate news on Fall in registration of property in November

Real Estate services, Indore
Posted on Dec 09, 2016
Indore

Property registrations in Indore fell for the first time in the past seven months in November after government's crackdown on black money. The up-tick in the real estate sector came to a standstill with large scale new projects put on the back foot in absence of investors and hesitant buyers.

Revenues from property registrations in November fell 39 percent to Rs 64.50 crore as against a month ago. However, property registrations in November remained higher than a year ago during the same period when revenues were Rs 52 crore, data from the registrar department showed.

Atul Jhawar, secretary, Indore chapter Confederation of Real Estate Developers Association of India (CREDAI) said, "It is a temporary lull in the real estate sector, which is expected to continue for some time now. People are in a wait and watch mode due to sudden changes in the economy, but, demand from actual users will be the driving factor."

Apprehending a downfall in real estate prices, people have hold back new purchases and cancelled new deals, property dealers said.

Real estate participants apprehend a rise in unsold inventories due to a hold in new purchases in near future by investors and end users.

Balkrishna More, senior district registrar said, "The momentum has slowed down. With the kind of pace witnessed since the beginning of the financial year we were expecting revenues to touch Rs 85 crore in November."

Most of the registries in the past months were from end users for residential properties, he added.

Jhawar said, "Enquiries for affordable housing in the range of Rs 30 lakh to Rs 35 lakh have increased and we expect this segment to grow in coming months."

Industry experts said that sale of economical segment is expected to remain good due to demand from actual users. Arun Jain, executive committee member, CREDAI said, "Demand for small flats of 500-600 sq ft has increased."

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