Cash transactions to demand higher rates

 Wanna own land through a 100 per cent cash deal? Think twice as you may end up shelling out more for the deal that can easily be done at market or below market price. The sale of a 3600 sq yard plot near S G Highway has set a precedent as the deal, in which the payment was made in cash, was done at a rate higher than the prevailing market price. Vijay Shah, the Chairman of the Real Estate Committee of Gujarat Chamber of Commerce and Industry (GCCI), said, “The land deals in which the entire payment is made through cheques tend to be costlier than the deals in which payments are made through cash or a combination of cheques and cash. Price also tends to escalate in cases in which there is a problem with title clearance.”

The need of the buyer becomes the key factor in deciding the price of the property, Shah said.

The realty experts are of the opinion that the market is going haywire. So far land deals are concerned, no one follows any rule. It all depends on the need, feasibility and location of the place play crucial role in deciding its rates. And this is the reason that has led to price disparity in the market, believe experts.

Pravin Bavadiya, Ahmedabad Realtors Association’s President, said, “It has become difficult to identify a clear trend in the market primarily because of the investors who are ready to pay hefty price for property. One of the reasons could be the foreign funds being pumped into the realty sector. There are land deals which take place at reasonable and market price.”

LAND DEALS BELOW MARKET PRICE

While the market is abuzz with deals higher than market rate, three land deals were cracked below the market price. These deals, say sources, took place post- Diwali. “The plots near Thaltej, S G Highway and Sindhu Bhavan under Town Planning scheme 50 were sold below the current price. The names associated with the deals are Jade Blue group, Paanetar party plot and a developer who doesn’t want to be identified,” said a source.

The Jade Blue’s building of 26,000 sq feet is said have been sold for Rs 18 crore according to Rs 62,000 per sq yard rate. The Paneetar party land is said to have gone for Rs 39,000 per sq yard, which is not so high compared to rates that were seen in the same area over the past few months. Another plot of 1700 sq yards has been sold for Rs 65,000 per sq yard. The owner of the plot on condition of anonymity said: “The land is at a strategic location and the size of the plot is also not huge. Therefore, we agreed to the rate. Had it been a bigger plot, we would have not gone ahead with the deal.”