Rates for expensive flats to be affected by demonetisation
The demonetisation of high-value currencies will hit Kolkata’s real estate sector. However, being consumer-driven rather than investor-driven, the market is not likely to witness the same intensity as in Delhi and Mumbai, experts say.
“Prices of houses in the Higher Income Group (HIG) will take a hit as such consumers are usually people who invest black money. The Middle Income Group (MIG) and Low Income Group (LIG) sector, however, the impact is expected to be lower as there is hardly any black money involved,” said Piyush Bhagat, director of the Space Group and vice president of Confederation of Real Estate Developers’ Association (Credai) Bengal.
“There will be an immediate reduction of 15 to 20 per cent in the price because many of the city’s projects were put up in a 70:30 or 80:20 white to black money ratio. Buyers who had decided that they would pay in cash now have no money and builders have fewer takers and they have to sell the apartments,” said Champalal Baid, director, Champalal and Co, private limited.