NGT put a spoke in the wheel of market growth
With the National Green Tribunal (NGT) banning constructions in core and green areas in Shimla town and the sword of building restrictions hanging dangerously, the real estate market remained sluggish in Shimla and other famous hill stations like Manali, Kasauli and Dharamshala in 2018.
The prices of constructed houses and flats shot up in Shimla and other hill stations, but there were few buyers as construction of only two-and-a-half storeys on costly land did not seemlucrative.
The government was contemplating to challenge the orders of NGT in the High Court, but no petition has been filed till date. After demonetisation, the builders, who had purchased costly land, are facing acute cash crunch and scrapping of retention police and restrictions imposed on regularisation of illegal constructions, have worsened the situation for them.
A large number of sellers are hoping that the government would take effective measures to bail out the owners of illegal buildings and shelved their plans, while the buyers are not keen on purchasing plots.
However, the resale value of constructed commercial properties has gone up phenomenally as buyers have no option. Few properties are available for sale in prime locations and owners are calling the shots.
The number of registries in rural area has been slashed by 40 per cent in 2018 as compared to those last year. “In order to stop haphazard constructions and mushrooming of buildings in Special Area development Authority (SADA), we are very cautious in approving the building plans”, says Deputy Commissioner, Shimla, Amit Kashyap.