GURGAON, MARCH 16: The Haryana government's announcement that it would review the policy on prohibition has brought relief to the depressed real estate market.Chief Minister Bansi Lal's statement after the debacle in the Lok Sabha elections has stirred speculations in the real estate sector.
Property dealers here say that while prices may not skyrocket suddenly, there has already been a nominal increase. ``The prices have picked up by Rs 500 - 800 per sq ft in some parts. This increase is in anticipation of the likely withdrawal. If Haryana goes ``wet'' again, believe me the price will shoot up like it did in 1995-96,'' remarked a real estate agent.
Many property dealers said that the imposition of prohibition was one of the factors responsible for a slump in the real estate business. The fallout from the policy also had wider ramifications. ``The government was losing a lot of revenue so it effected certain policies which led to recession. But if prohibition is withdrawn then the government might goeasy on these decisions, possibly reversing some of them,'' said a property dealer in Sector 14.
``A mere announcement has led to fluctuation in the prices. For instance, in DLF, Phase-I, prices have gone up by Rs 600 to 800. If the policy is withdrawn, there will be an increase of 20 to 30 per cent in the next six months,'' said Birender Singh, a real estate agent.
Suresh Malik, another property dealer opined that once prohibition is lifted the ``investors'' will again get involved in the property business in Haryana. ``For the last one and a half year, the major players (the financiers) were not risking their money here. Real estate prices increase when these investors pump money. The prices will again increase within months,'' Malik said. He is of the view that genuine buyers were not really bothered by the implementation of prohibition. ``Instead the investor, who wanted to double his money, was reluctant to purchase property here,'' he added.
Real estate agents say that in the coming months,Gurgaon will command an average price of Rs 17,000 to 18,000 per square yard as compared to the present average rate of Rs 11,000 to 12,000 per square yard. ``The fact that mere rumours have led to hike by Rs 500 to Rs 1,000 confirms that prices will go pretty high,'' said Suresh, a real estate agent.
Property prices had crashed dramatically in the past one year and many of the decisions taken by the Haryana government were blamed for this slump.But real estate agents are now hopeful that the government will take a more lenient view and the market will stabilise on a ``high note''.
One of the major reasons for the slump was Haryana Urban Development Authority's (HUDA) decision to resume vacant plots by December 31, 1997. However, the HUDA gave an extension of one more year for such plots till December 31, 1998. Property dealers are now making efforts to convince the government to reconsider this decision.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
