Fringe areas around metros and tier-II, III cities to see land prices plummet in the coming years
Anuj Puri, Chairman & Country Head, JLL India
Post-demonetization, the affordable housing segment will get a much-needed boost. Confined to the fringe areas of metros, this segment is expected to get a boost as land prices will plummet in the next few years, especially in far-flung areas around Indian metros, and the tier-II, III cities. Most agricultural land transactions involved a cash component, which got affected after PM Modi’s announcement on the evening of November 8.
INR 500 and INR 1000 notes ceased to exist as legal tender from November 9. Land dealings involving a cash component, therefore, will no longer be carried out in the old ways. Those dealing in cash will be unable to pay in the old currency notes and those with undeclared sources of income would fear paying entirely in white as that will carry a risk of attracting the I-T department’s scrutiny.
While the areas within metropolitan limits will be saved from land devaluation due to their high-demand and low-supply scenario, their poorer cousins – the fringe areas – will see an impact after a year or so. As land prices ease in these areas, ticket sizes of apartments are also expected to come down. This should help bring house prices closer to the affordability of many salaried home buyers and spur real estate demand – this time, driven largely by end users and not speculative investors.
Housing in certain precincts to become more affordable than others
Other cities also have fringe areas where prices will ease. However, such locations will need to be observed over the next six-twelve months to understand by when, and what margin, the prices there will soften and local demand-supply dynamics could bring about a change in some of these areas.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Sign me up for the newsletter!
Notify me of follow-up comments by email.
Notify me of new posts by email.
Zendesk’s Double-Digit Growth in APAC Cements its Commitment to Developing Tech Talent Across the Region
Hungama’s latest Marathi original show, ‘Shree Kaamdev Prasanna’ crosses 43 lakh episodic views in 30 days!
Mother Dairy – Pioneers of Automated Bulk Milk Vending – Announces Pan-India Plastic Waste Collection & Recycling Drive
5 Major Organ Transplants at Pune’s Sahyadri Hospitals
Axis Bank launches MAGNUS credit card, strengthening its Premium Cards portfolio
2014 The Global Indian New Network (TGINN)