NEW DELHI: Property is an asset. To many, it is a blind investment since its value never depreciates. But with real estate prices in major cities reversing the past trends, many are facing the pinch. The hardest hit in this lacklustre buying and selling have been the real estate agents.

A few, like Mahesh Khurana of AAA Star Properties, do not want to take any more risks and have called it a day. "For past eight months, I have been living on my own resources. Now, I cannot afford to depend on this business only," says Khurana in despair. "Property dealing can no more be a permanent business. Ninety per cent of those who entered the fray to make a quick buck in the last few years have downed shutters," says Sunil Tuli, who along with his brother entered the business in 1990. But, "property business is not a shop. How can it be shut down when it was never opened", says Yash Multani.However, Multani, who has been dealing in property for over 12 years, does not deny that his business too has been affected but feels that it is not really going to make much difference to him since he is a landlord in Panipat. "Besides, I deal at a very different level. I have personal equations with all my clients."

"The prices in general have not come down. It is just that those who have borrowed money to engage in property transactions are in trouble because the value is not appreciating," points out real estate consultant Pawan Ahluwalia. "People, who have no overheads, will not lose much.

"Many brokers, like Multani, are manning the fort in the hope of prices rising back to the peak though they rule out the possibility in the near future. "It all depends on Government stability. If Prime Minister Gujral is able to give us concrete policies, things may improve," observes Ahluwalia, who feels the slump in real estate is a manifestation of the overall economic slow-down.

Real estate prices have not nose-dived. It is just that there are more sellers than buyers. People who were buying property as investment are not doing so and those who are selling are desperate. "But there are enough genuine buyers who are purchasing property for themselves," says Ahluwalia whose Pawan Associates boasts of big corporate houses as clients.Ahluwalia, however, adds that business has not been very good this year. "If I make 50 per cent of what I did last year, I will be a happy man".

"Most of my clients are bulk buyers and they are not buying anymore. Besides, they are also holding on to their properties. I myself don't advice people to engage in any transaction for some time. It is a question of faith and reliability."

Is property dealing all about faith and trust? "It is widely felt in our circle that property dealers work with three Cs. First, convince the buyer to buy and the seller to sell. If that does not work out, confuse him and if the deal is still not clinched, corrupt him," says Multani in a lighter vein while attributing the slump to the various scams.Multani feels the flow of black money into the property business has declined in the last one year.

"Direct purchasers and users were always less. It was mainly the black money of politicians and scamsters which was being used for financing the real estate investment and even the share market deals." With the governments becoming unstable and policies becoming unclear, investment in any form has become a risk.

Tuli also agrees that there is not enough money in the market. "There was an unbelievable rise in prices. It was, therefore, natural that after reaching the peak they should fall by at least 20 to 30 per cent since they had risen by 100 per cent.

"The slump has not been very great in Delhi as compared to Mumbai. According to Multani, it was only in commercial areas, like Connaught Place and Karol Bagh, that rents slided.

"Price of land, as such, can never fall below the rate at which it was purchased. It was only in Rohini that people who had bought houses sold them off at whatever price they could get since they had mainly come from Punjab and once situation in the state improved, they wanted to go back."

Ahluwalia sees great potential for prices to rise in the areas towards Delhi's south, especially Gurgaon. "Delhi has always expanded towards the south. It is environmentally good. Besides, if a plot in a South Delhi locality costs say Rs 60,000 per square yards compared to just Rs 7,000 in Gurgaon, the chances of escalation are obviously more in the latter," he explains.

Ahluwalia, however, does not see much scope in East Delhi. "It is congested." The only place which can be a good bargain in the years to come is Greater Noida which has a good infrastructure and is coming up in a planned way.

Multani feels the peak can now never be achieved. "Barring intervals lasting two or three days, have share prices ever risen so high as they were before Harshad Mehta's security scandal? Same may be true for the real estate business. No one may like to invest in the property gamble anymore."

Still, property agents may continue to play the game for they believe the slump is a part of a process of price correction. It can happen after every two or three years. "But prices will rise again. And, we are working harder," affirms a hopeful Ahluwalia.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.