Demonetisation brought with itself a complete change in the system. Triggered by the ripple effect of the move, lack of liquidity in the market is one of the major issues faced by the developers even as of now.
Real estate in Delhi is driven by market sentiments and from the perspective of the homebuyers, demonetisation has indeed pulled the market down, avers Kshitij Nagpal, President of Association of Property Professional, Delhi NCR, in an exclusive interaction with 99acres.com.
Three years post demonetisation, is the industry still reeling under the impact it brought along?
There is a complete change in the system. As a matter of fact, the industry has witnessed the worst turmoil post demonetisation. The industry used to thrive upon trading with a limited quantum of investment. Moreover, it was possible to trade the properties with handsome returns, which now looks like a dream. In the wake of the present situation, there still seems to be a long way before we can experience the golden days again.
Has the industry inched towards a full-fledged recovery yet?
Yes, definitely. The introduction of the Real Estate (Regulation and Development) Act, (RERA) seems to be the right step towards the full-fledged recovery of the market. With RERA as the main guiding and controlling force, the industry has certainly shown signs of revival.
How is the current scenario of housing demand and supply in your city?
The masses have now started relying on the present valuation of properties as it has not changed since the past few years. On the other hand, land prices have witnessed an increase of a minimum of 35 percent in the last one year with a healthy demand backing the market.
What are the current challenges that are hampering realty revival in your city?
Unavailability of funds for the developers is one of the major reasons because of which the market is still not getting the right push. Additionally, the collapse of financial institutions is making the market go bleak.
How do you expect the market to fare in the coming 5-6 months?
With developers going burst and none of the new ones getting born, the supply is bound to go down. Reputed developers having a broader base and the ones backed with adequate funding will only be able to sustain the odds. In comparison to the older areas, new development areas are bound to do better because these are strategically planned are brimmed with latest features, including the architecture. Connectivity to Gurgaon and Delhi will play a major role in uplifting the status of these areas in a short span of time. Meanwhile, the Government could have done better in terms of providing basic infrastructure in the regions along the Dwarka Expressway.
Moreover, the Government will have to play a major role in order to kick start the market, which is one of the highest contributors of the Gross Domestic Product (GDP) and employment in our country.