Luxury realty sales to be affected by demonetisation
While the currency demonetisation is expected to impact almost all the property segments, it is the luxury where the impact is expected to be accentuated. “We expect home prices to reduce in the luxury segment first due to paucity of money in the market and the infusion of secondary market units on sale at lower rates,” says Surabhi Arora, Senior Associate Director, Research at Colliers International India. According to some estimates, cash component in the sale of luxury properties comprise of nearly 25-30% of the total price. “There is a demand of cash component by seller to avoid capital gain tax. This is also due to difference in registration value and market rates,” Amit Bhagat, MD & CEO, ASK Property Investment Advisors.
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