News: 'Fear factor' downs Indian property boom
(FE 17/07/2006) New Delhi - Despite the year-long moratorium on demolitions, property owners in the city still seem uncertain about constructing and buying properties.
According to Delhi government’s revenue department figures, the registration of properties in all zones has taken a record dip—25 per cent compared to January—even after the regularisation of unauthorised construction.
As per revenue department figures, the worst hit is West Delhi, where the property registration has fallen from 5,397 in May to 4,223 in June. In January, the figure in the district was 6,055.
The real estate boom saw a drop after the Delhi High Court ordered demolition of unauthorised constructions in December. However, in May, the Urban Development Ministry (UDM) notified a bill—Delhi Laws Special Provisions Act, 2006—which ceased all action against unauthorised construction in private land for an year.
Still, many seem indifferent to the idea of buying property. Dealers attribute it to the “fear factor”.
“Despite the ministry Bill, people are still uncertain of the outcome of the moratorium and are cautious,” said Aaakash Taneja of Taneja property dealers in Pitampura. Also, no one seems to want to buy properties constructed by the “builders”.
“Since most of the properties these days are constructed by builders who are now perceived as flouting civic rules, people are scared of demolitions. Even if they do buy, it is only after a thorough check,” said Ramesh Saluja of Saluja and Sons properties in Rajouri Garden.
According to Delhi government’s revenue department figures, the registration of properties in all zones has taken a record dip—25 per cent compared to January—even after the regularisation of unauthorised construction.
As per revenue department figures, the worst hit is West Delhi, where the property registration has fallen from 5,397 in May to 4,223 in June. In January, the figure in the district was 6,055.
The real estate boom saw a drop after the Delhi High Court ordered demolition of unauthorised constructions in December. However, in May, the Urban Development Ministry (UDM) notified a bill—Delhi Laws Special Provisions Act, 2006—which ceased all action against unauthorised construction in private land for an year.
Still, many seem indifferent to the idea of buying property. Dealers attribute it to the “fear factor”.
“Despite the ministry Bill, people are still uncertain of the outcome of the moratorium and are cautious,” said Aaakash Taneja of Taneja property dealers in Pitampura. Also, no one seems to want to buy properties constructed by the “builders”.
“Since most of the properties these days are constructed by builders who are now perceived as flouting civic rules, people are scared of demolitions. Even if they do buy, it is only after a thorough check,” said Ramesh Saluja of Saluja and Sons properties in Rajouri Garden.
posted by InCar Group Press Room at 16:57
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