Outsiders pick high-end realty, not many buyers for mid-range
Uttarakhand had witnessed a massive boom in property rate after its formation in 2000. There was a substantial hike in land prices and the state was also one of the favourite investment destination for the non resident IndiansUpdated: Jan 01, 2018 20:41 IST
Uttarakhand had witnessed a massive boom in property rate after its formation in 2000. There was a substantial hike in land prices and the state was also one of the favourite investment destination for the non resident Indians (NRIs).
Dehradun, the capital of Uttarakhand, saw rapid colonisation with a large number of projects coming up in the city. But the scenario changed after demonetisation by the central government.The earlier boom has subsided with prices of land remaining static. The state government is also mulling over increasing the circle rates of land in a few months, thereby, adding to the woes of the already cautious buyers.
However, the high end flats, ranging from Rs 1 crore to Rs 2 crores are still being purchased by people from other cities or Delhi and Mumbai based investors. What as been badly hit is the mid segment properties as the small builders are finding it difficult to cope with the decreasing need of the consumers who are cash strapped.
Rudra Thakur of the ATS Builders, that have mega projects in Dehradun, said that the high end market has not witnessed a lull. “The flats in the premium range have been sold out and the prices are only going up. What is important is the fact that many people are buying these flats for investment purposes and the prices are appreciating fast. The low end apartments, not meant for investment purposes are going through a slack period.”
Raj Lumba, a city based builder, said that the market was presently down for mid range flats and apartments and land prices too were static on the outskirts. First, there was a steep rise in prices for many years and now the prices are coming down. The mid range investor with cash crunch is something which is hitting the property market bad,” he said.
Pradeep Sharma, presently living on rent, said that he had to shelve his plans for buying a flat after demonetisation. “The price rise has hit us a lot along with the other responsibilities, and at present, it is better to live on rent than to buy a heavily priced apartment.”
First Published: Jan 01, 2018 20:41 IST