Not every property developer has been hurt by demonetisation. Haryana Urban Development Authourity (Huda), the government developer, is still managing to attract buyers for its properties.
In the two auctions held after demonetisation, Huda has managed to collect around Rs 50 crore by selling residential properties in Gurgaon.
Despite the real estate market collapsing in the immediate aftermath of demonetisation, Huda went ahead with its pre-fixed auction of properties on November 15 and November 22, collecting Rs 50 crore from sales of residential plots in different Huda sectors in Gurgaon. The authority has now lined up six more auctions in December, for properties in different urban areas of the state, and is expecting to successfully complete them.
Admitting that the market has been affected, a Huda official said they were initially worried about the outcome of the auction, but decided to go ahead with them as the dates had been announced .
He said that for several years, Huda has been accepting payment for sale of properties through cheques or RTGS. “We do not deal in cash. All our transactions are done through cheques,” said the official, adding there is no scope for using black money to buy Huda properties. So demonetisation has not affected the market value of their properties.
Administrator Yashpal Yadav said that in recent months, Huda has managed to sell properties at a good price across the state. “In Gurgaon, we’re receiving many queries about our property auctions,” said Yadav.
Real estate expert Pradeep Mishra said the basic difference between a deal with a private developer and one with Huda is the transparency and the lack of cash involved in deals. “Huda sell property on fixed reserved price through public auction, and payment is done through cheques. In case of private developers, there is a difference between the amount paid by buyers and the price at which the property is registered,” said Mishra, adding this is why private developers take part of the payment in cash.
As a result, Huda continues to sell properties, while the rest of the real estate market has been badly affected by demonetisation.
Source: Economic Times