Demonetisation, RERA & GST fail to impact high end realty deals

Demonetisation, RERA and then GST has had an impact on real estate market, especially the high-end segment, not to mention the general slowdown in the market. In such a scenario, a deal worth Rs 45 crore for a property that has an uninterrupted view of the Arabian Sea, offers a ray of hope. Of late deals worth Rs 30 crore to Rs 400 crore have also been sealed in the Capital.

The deal registered in Mumbai on August 9, saw a 2,152 sq feet flat on Bhulabhai Desai Road go on the block for Rs 45 crores. The property Ashford Palazzo has been bought by Ranjit Malhotra of Empire Industries. An apartment of the same size in Central London would set the owner back by Rs 60 crore to Rs 80 crore.

Real estate experts say that this is a one of a transaction, a property that has caught a buyer’s fancy and therefore is not something that will set a market benchmark But it does bring in positive sentiment for high-end property market segment, they say.

Mumbai market is not the only market to have seen high-end, marquee deals being sealed. South Delhi and Central Delhi too has seen at least eight to 10 deals in the range of Rs 30 crore to Rs 400 crore being committed or signed off in the last three to six months, say real estate brokers privy to such deals.

Most of these properties have been sold after almost two years of the buyers deciding to sell the property. “These properties have been on the block for over two years and it is only in the last few months that they have either been sold or sealed for prices much lower than what was quoted two years ago,” says a consultant.

In Golf Links, two houses were recently sold for Rs 80 to Rs 85 crore. The same properties would have commanded a price of over Rs 90 crore in a healthy market. A property in Jorbagh recently sold for Rs 110 crore. In West End area, properties have been sold for Rs 60 crore to Rs 65 crore in the last three to four months, say brokers.

In Golf Links, Paytm founder Vijay Shekhar Sharma bought a 6,000 sq-ft residential property worth Rs 82 crore in the month of June.

Those buying such properties are usually people who have sold their family homes in Lutyens Delhi or other tony areas of Delhi.

Brokers say that activity is in this segment has picked up of late and many builders are buying up plots to create more stock in these exclusive enclaves. Only properties located on 600 sq yard plots and above or properties with eight kitchens will fall under the ambit of RERA, those less than 600 sq yards do not.

vandana.ramnani@nw18.com