The slump in Ludhiana’s real estate business has already rung the bell for builders and promoters of the bad phase that real estate sector in Ludhiana is going through. According to reports, the real estate sector in Ludhiana appears to be cruising through a bad phase.
A recent report released by the National Housing Bank (NHB) hints a fall in prices of residential units. This fall has been witnessed during the first quarter of the year — January-March 2017. National Housing Bank monitored 50 cities before submitting a report on the same. According to National Housing Bank, 27 cities have witnessed an improvement in prices against that of December last year. The improvement in 27 cities was registered in the last quarter of the 2016-2017 fiscal ending March 2017 whereas 19 out of the 50 targeted cities witnessed a fall in the index of property prices.
Slump in the Real estate business in Ludhiana
Out of the 19 cities which witnessed a fall in property prices, Ludhiana was the major hit city. Ludhiana registered a fall of 7.8 per cent as against the prices of property in December last year. In addition to Ludhiana, property prices in Delhi, Gandhinagar, Surat and Kolkata too witnessed price fall. Property prices in Gandhinagar fell by 12 per cent, in Surat by 8.9 per cent, in Kolkata by 7.2 per cent and in Delhi, the prices fell by 4.3 per cent during the same phase. According to the Real estate experts, multiple factors can be responsible for the fall in property prices. The real estate experts also believe that one of the major reasons for the price fall can be demonetization.
The Demonetization effect on property prices in Ludhiana
It was reported that after demonetization last year in November, people were not able to buy properties in the dearth of cash availability. It was also stated that because most of the money was locked up in banks, people didn’t have enough cash available with them to buy a property. In addition to this, most of the traders were apprehensive for many months about The Goods and Services Tax (GST) that had become a ‘bugbear’ for the countrymen. During this phase, the traders were more concerned about running their business than buying property. This was another reason that adversely affected the property prices.
Source: Times of India