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Property registration falls in Ahmedabad

Ahmedabad witnessed 3.5% decline in sales deed registration in the year ending December 2011.

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Despite all-round development of Ahmedabad and the growing urbanisation, property sales deed registration in the city has declined, which indicates that the realty market is entering into slowdown. The city witnessed 1.05 lakh sales deed registrations at 14 sub-registrar offices during 2011, which was 1.09 lakh in 2010. It shows a decline of 3.5% in the city.

The comparative property sales deed registration data of 2010 and 2011 reveals that the city and west zone have witnessed a fall, while the east has registered a growth. The west zone, covering sub-registrar’s offices in Memnagar, Vadaj, Paldi, Vejalpur, Daskroi (agriculture), Sola and Bopal, witnessed registration of 50,601 sales deeds in 2011, which were at 57,664 in 2010, thus showing a decline of 12.24% over the previous year.

Similarly, city zone, consisting of the walled city, has also witnessed a decline of 9.96% in sales deed registration in 2011 over the last year. The city sub-registrar’s office had registered 5,894 sales deeds in 2011, which stood at 6,546 in 2010. On the other hand, east zone, consisting of areas like Narol, Aslali, Naroda, Odhav and Nikol, has registered a positive growth over the last year. The east zone witnessed registration of 48,590 sales deeds in the calendar year 2011, which was 44,699 in 2010, a showing positive growth of 8.70%.

The city had witnessed 21.50% growth in sales deed registration in financial year 2010-11 over the year 2009-10.

Experts in the real estate market blame the jantri rate hike by the state government for the sluggish demand.

“The jantri rate hike implemented by the state government in April 2011 affected property transactions in the city. Moreover, the interest rates were too high, so the customers deferred taking possessions of the property,” said Vikas Bhatia, proprietor of Jagdamba Properties.

Bhatia said products launched in mid-2010 will be ready for possession in 2012, so there is a possibility of positive growth in the current year.

“Moreover, the RBI has now begun showing positive signs by reducing the repo rate and is expected to ease out liquidity thus resulting in reduced interest rates,” said Bhatia.

Sellers approaching buyers due to agri realty slowdown

The agricultural land market is witnessing a slowdown in the rural and sub-urban areas of Ahmedabad. And one can blame it on the economic slowdown. Though farmers are not willing to give away their land at lesser price, in the absence of land deals during the past few months, they have started approaching brokers and builders for selling their piece of land.

The current scene is unlike the market scene eight months back. If the farmers are not able to attract buyers, then there are chances that farmers may try to strike deals with builders and brokers for the same.

With a fall in demand for land from realtors and investors, farmers have been witnessing drastic decline in land deals. As a result of which farmers have now started inquiring about prospective buyers who may show interest in buying their land, but in vain.

For nearly three years agriculture land was selling like hot cakes in all parts of the state and land prices were sky-rocketing. However, the market is showing signs of saturation and for the past eight months prices have not gone up. This is due to decrease in demand.

The sellers have begun contacting prospective buyers in areas like Dholera, Viramgam, Dehgam and other villages near Ahmedabad. “Before eight months, we used to contact the farmers as we were interested in buying the land. However, the farmers were not very eager to sell the land,” said Vishnu Thakor, a broker active in Dholera region.

The farmers had expected the rally in prices to continue for a longer time and were waiting for the right time to get maximum possible price for their land.

“Now hardly any major land deal takes place in the market as buyers are not ready to invest in land. As a result the sellers have started approaching us as they do not expect prices to go up now,” said Gunvant Chavda, a realty broker in Dehgam. He said small investors are investing money in small plots in the realty schemes launched by developers near urban areas.

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