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Real estate to bear the brunt
Real estate developers in Andhra Pradesh are feeling fear that they will be the worst affected because of Central government\'s
Vijayawada: Real estate developers in Andhra Pradesh are feeling fear that they will be the worst affected because of Central government's decision on demonetisation of higher denomination notes as almost all transactions stalled on Wednesday after the announcement of Prime Minister Narendra Modi.
Confederation of Real Estate Developers’ Association of India Andhra Pradesh State president Siva Reddy said both realtors and customers would face difficult situation and the sector would not recover from this situation for at least one year. Majority transactions will be affected by the decision of the Union government, he said.
Middle class and upper middle class people who paid advances for plots in apartments are facing problems as some of them agreed to pay the major amount in black as per the request by the builders. A shopkeeper, P Seetharamaiah said, “I paid advance Rs 5 lakhs for a plot 10 days ago. The builder wanted me to pay at least 50 percent of total amount in black. I am clueless on the response of the builder in the present situation.” Seetharamaiah said middle class people, who save money for years to fulfil the dream of owning a house, are now in confusion. It may not be a problem to those who takes housing loan from banks, he said.
A senior charted accountant, C T Chowdary of Vijayawada said a steep fall will be recorded in land transactions for at least six months. It not easy to transfer money into land and gold transaction for some time, he said.
A builder said just one or two per cent developers do business on paper in real estate sector. “It will not possible to us to run all transaction with white currency. Some traders who have more than Rs 10 lakhs in cash are facing trouble to transfer the money,” he said. Siva Reddy said the sudden announcement would affect the business in the State which had already been facing worst condition.
Developers of real estate ventures are also facing the same situation. A developer, Saleem said farmers will refuse to register farm lands as they are not willing to take huge amounts of money in present situation. He expressed fear that they might leave advances which have already been paid to farmers.
