NASHIK: The slowdown, increased land prices, rising cost of construction materials have badly affected the realty sector and around 4,000 ready flats across the city are reportedly lying unsold.
The recent hike in ready reckoner (RR) rates, which is upto 48%, has also added to the real estate sector worries. Moreover, the prices of sand and macadam have increased by 30-50% in the past five to six months.
The real estate sector is already facing recession for the past two years. The gap between demand and supply has increased a lot in the city. Though the supply is good, the demand is comparatively less.
According to sources from real estate sector, "The sector is still facing recession to some extent, but the present hike in ready reckoner rates may again push back the growth of the real estate sector. The number vacant flats have reduced from 8,000 to 4,000 in past year."
Kiran Chavan, president, Confederation of Real Estate Developers' Association of India (Credai), Nashik said, "There are no new real estate projects being launched in the city currently. But the bookings are good in old schemes. The real estate projects with around 5,000 flats are under construction and nearing completion. But the hike in ready reckoner rates may badly affect the growth of the real estate sector."
A source said, "There are around 10 large projects over 20,000 sq m of land with around 3,000 flats altogether under construction, but their constructions have been halted due to lack of environment clearance.
The state government revises the RR rates every year on January 1. This year, the land or plot rates have been increased by 10-48.93%, while the rates of residential properties like flats and row houses have been hiked by 18.04-34.36%. The rates for commercial properties like shops and offices have been increased by 1.62-30.5%.
In past few months, sand prices have increased from Rs 3,200 per brass to Rs 4,100 per brass, macadam prices from Rs 2,200 to Rs 3,500, cement from Rs 250 per bag (50 kg in a bag) to Rs 356 per bag and steel prices from Rs 41 per kg to Rs 48 per kg.
The land prices in Nashik have increased by three to 20 times in different parts of the city in the past six-seven years. The land prices, which were in the range of Rs 1,100 to 15,000 per war (per nine sq ft) in different parts of the city six-seven years ago, have increased to Rs 8,000-Rs 35,000 per war.
The flat prices, which were in the range of Rs 1,500 to Rs 2,500 per sq ft in the city six-seven years back, have shot up today in the range of Rs 2,700 to Rs 6,000 per sq ft. High-end apartments in upmarket areas like Gangapur Road, College Road and Mahatma Nagar would cost in the range of Rs 5,000 per to Rs 6,000 per sq ft.