The secondary realty sector market of Bengaluru has recuperated from its low point in the months that succeeded demonetization and has been witnessing betterment in sales in the last quarter. The deal is not that big, say real estate agents.
According to agents, the reversion began in October, and it still has a long way to achieve the pre-demonetization levels.
“Sales have picked up after the confusion of RERA (Real Estate Regulation Act) and GST (Goods and Services Tax). Previously, we used to do one or two large deals every month; now, the ticket size has come down and we are doing 2-3 deals a month,” said Abdul Suhail, who runs Coldwell Banker Sam One Realty.
‘Luxury properties has few takers’
Suhail, who caters to properties around the affluent Sadashivanagar and Hebbal territories, said that earlier, his deals had an asking price of between Rs 1 crore to Rs 1.5 crore. However now, majority of his customers are looking for second sale properties ranging from Rs 60 lakh to Rs 80 lakh. “I do not see demand for luxury properties now,” he said.
Cash is the prime factor role in properties on second sale, because the seller usually wants to economize on capital gains tax. In terms of the buyer, the charm of cash bargains is that they can register a lower value to the registration office and lower the stress of stamp-duty. Demonetization has had detrimental effect on the flow of cash.
Waquar Ahmed of Ahmed Realty now receives around 12 enquiries per month based on which he manages to make sales out of two, in comparison to about 30 queries every month and 3 sales before the government banned the use of Rs 500 and Rs 1,000 notes.
“The numbers are still less, but there is a slight improvement from what it was in the beginning of the last year. I’m selling properties around MG Road and Richmond Town at aboutRs2 crore toRs4 crore. It will take another year for the market to recover, with the elections coming,” Ahmed said.
Real-estate adviser Prime Properties’ proprietor Ram Rajpal said that sales have shot up since October. On the other hand, enquiries began to come in a few months before that, without being converted to sales. “We’re now selling about 2 per month compared to 4 before demonetization. That’s better compared to last year when we did nothing.”
Prashanth Sambargi, an associate at Mars Realty, is not optimistic. He says that before demonetization, the firm was able to reap in around 15 secondary transactions every month; after that, the number has reduced to just 2. “I do not share the optimism as it is like being hungry for three days and getting just a loaf of bread on the fourth,” he said.