BHOPAL: Though demonetisation has not affected the real estate market immediately, MP unit of Confederation of Real Estate Developers Association of India (Credai) says better days are ahead for the sector.
The realtors in Bhopal have been facing tough times for the past few years. More than 15000 housing units, many of them ready to move, have been waiting for possession. Lack of funds and higher rates of property after government guidelines have been attributed as reasons behind the slump in the property market.
“Eight to nine months after demonetisation, I see great future for builders,” said Vijay Mirchandani, chairman of MP unit of CREDAI. “Huge amount of money lying idle is now reaching banks. The banks would have enough cash and will be forced to reduce the interest rates,” he said. According to him, there was a boom in realty bazar when the NDA was in power last time and interest rates had touched 7.5%.
Mirchandani said the demonetisation coupled with the real estate regulatory act (RERA) will work wonder for the builders. After RERA and demonetisation, there will be transparency in the market and banks as well as investors would have confidence in the builders for lending. He said buyers take home loan and when they get loan at cheaper rate, they would be encouraged. But, he said, all this is likely to happen in 8 to 9 months. CREDAI spokesman Manoj Meek said, “Though there is no immediate impact in the market, the CREDAI is expecting improvement in the coming days.”
However, the immediate problem is being faced by the tenants, especially the students. Though most of them have paid rent of their house in the first week of this month, they are concerned about the next month’s rent. Besides, there are students who pay rent on 15th of every month and they have not paid this month’s rent because of cash crunch. Neeta Sharma, who lives in a rented accommodation at Arera Colony said, “I did not have money for meals, how would I pay monthly rent? I have requested my landlord to exempt me, telling him that I will pay as and when I have cash.”
Credits ET Realty