Mangaluru: Note ban won't bring down land, apartment prices, says CREDAI

[email protected] (CD Network)
November 30, 2016

Mangaluru, Nov 30: The Confederation of Real Estate Developers Association of India-Mangaluru has rubbished the prediction of experts that demonetisation would lead to a major slump in the prices of apartments, houses and lands.

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Addressing media persons here on Wednesday, D B Mehta, president, CREDAI, Mangaluru, describing reports of house/apartment prices dropping by 30% or more, land prices dipping by 50% or more and GDP growth coming down and unemployment increasing as mere “myths”.

He said that apartment prices might see a small decline in initial stages of demonetization more out of liquidity issues. Demonetisation will reduce land prices by 15% but not bring down the actual construction cost or the taxes.

Pointing that taxes contribute more than 30% of total cost, he said land prices accounts for only 30% of cost of apartments in a tier II city such as Mangaluru.

The decline of prices of apartments will be minimal of around 5%, he said adding the coastal city unlike the Metros is not an investors market with buying in realty here mostly by NRIs and non-resident Mangalureans more for future use. In metros, 65% of buyers are actual end users and the rest investing in realty, he said.

The other factors that could only end up pushing the realty prices in the near future, he said is the passage of Real Estate Regulation Act which will only add to compliance and legal costs.

Besides, there is no clarity on impact of GST on costing of realty sector, he said. Even the land holders in the city are sitting on their ancestral, family or personal land and are in no mood to sell the same, he said adding even a mini survey carried out by CREDAI has confirmed this.

Averring that black money component in real estate has helped reduce cost to buyer due to savings in taxes that builders passed on to consumers, Mehta said real estate market has perfect competition and is plagued by tremendous over supply of finished stock. With legal transaction now becoming the norm, Mehta said there will be additional cost of by way of taxes which will increase the cost and price. Primary market sale by builders even otherwise is by way of cheque, he said.

Reiterating that the best way to invest is to buy low and sit tight, he said this is the right time when the customers should go for bargain hunting and buy apartments of their choice from a CREDAI member builder.

"This period might last till March 2017," he said. With fewer new project launches, demand supply situation will change very fast. Within a year, three years of ready stock will look like 18 months stock with lower new supply and increased off take, he noted.

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Comments

Shaad
 - 
Wednesday, 30 Nov 2016

Builders united to save their a**. It seems, builders are more affected in demonetization.
Modi's move will ruin all of us.

Rikaz
 - 
Wednesday, 30 Nov 2016

It was predicted Prime Minister.....

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News Network
December 16,2025

Mangaluru, Dec 16: The Mangaluru City police have significantly escalated their campaign against drug trafficking, arresting 25 individuals and booking 12 cases under the Narcotic Drugs and Psychotropic Substances (NDPS) Act between November 30 and December 13. The crackdown resulted in the seizure of a substantial quantity of illicit substances, including 685.6 grams of MDMA and 1.5 kg of ganja.

The success of this recent drive has been significantly boosted by the city’s innovative, QR code-based anonymous reporting system.

"The anonymous reporting system has received an encouraging response. Several recent arrests were made based on inputs received through this system, helping police tighten the noose around drug peddlers," said the City Police Commissioner.

The latest arrests contribute to a robust year-to-date record, underscoring the police's relentless commitment to combating the drug menace.

Up to December 14 this year, the police have registered a total of 107 cases of drug peddling, leading to the arrest of 219 peddlers. Furthermore, they have booked 562 cases of drug consumption, resulting in the arrest of 671 individuals.

The scale of the seizure for the year reflects the magnitude of the problem being tackled: police have seized 320.6 kg of ganja worth ₹88.7 lakh and 1.4 kg of MDMA valued at ₹1.2 crore. Other significant seizures include hydro-weed ganja worth ₹94.7 lakh and cocaine worth ₹1.9 lakh, among others.

The Commissioner emphasized a policy of rigorous enforcement: "We ensure that peddlers are caught red-handed so that they cannot later dispute the case or claim innocence."

To counter the rising trend of substance abuse among youth, the Mangaluru City police have rolled out uniform guidelines for random drug testing across educational institutions.

As part of the drive, tests were conducted in approximately 100 institutions, screening an estimated 5,500 to 6,000 students in the first phase. 20 students tested positive for drug consumption during the initial screening.

Students who tested positive have been provided counselling and are scheduled for re-testing in the second quarter. The testing will also be expanded to students not covered in the first phase. In a move to ensure strict implementation, police personnel were deployed in mufti in some institutions. Reiterating a zero-tolerance stance, the Commissioner confirmed that random testing will continue, and colleges have also been instructed to conduct drug tests at the time of admission to deter substance abuse from an early stage.

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News Network
December 19,2025

Mangaluru: The Mangaluru CEN police have arrested a 23-year-old man for allegedly posting provocative and misleading content on an Instagram page named “mr_a_titude”, targeting the Bajpe police.

Mangaluru Commissioner of Police Sudheer Kumar Reddy C H identified the arrested as Abhishek M, a resident of Katipalla in Mangaluru.

A case has been registered at the Bajpe Police Station under Sections 353(1)(c), 353(2), 56, and 57 read with Section 189 of the Bharatiya Nyaya Sanhita (BNS) in connection with the post.

According to police, the accused uploaded a photograph of a hotel on the Instagram page and alleged that accused persons in a murder case under the Bajpe police jurisdiction were being given “royal treatment” by the police, including being served beef meals daily from the hotel.

The post further accused the police of supporting criminals, misusing their authority, and betraying public trust. Police said the content was provocative in nature and aimed at inciting public outrage against the police.

Following the post, a case was registered at the Bajpe police station, and further investigation was transferred to the CEN police station.

Police records indicate that the accused has a criminal history, with multiple cases registered against him, including murder, attempt to murder, assault, and robbery at the Surathkal Police Station, and one case at the Kaup Police Station.

The Commissioner said the accused was traced and arrested using technical evidence.

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News Network
December 19,2025

Mangaluru: Public transport in Mangaluru is set for a state-led transformation as the government moves to deploy 100 new electric govt buses to replace unreliable private services. The initiative aims to provide a dependable alternative to private operators who have been frequently "cutting trips," leaving thousands of commuters stranded.

The announcement was made by Deputy Commissioner and MCC Administrator Darshan HV during a public phone-in session. The move specifically targets routes where private bus service has become erratic, ensuring that citizens no longer have to rely on a fluctuating private sector for their daily commute.

Restoring the Govt Presence

The transport crisis was brought to the forefront by Ramayya, a resident of Bajal, who highlighted a growing trend of private buses skipping morning and night trips. With the previous KSRTC (govt) services discontinued, residents have been left without a fallback option.

To fix this, the DC confirmed that the PM-eBus Sewa Scheme will bring 100 government-owned electric buses to the city:

•    Phased Deployment: The first 50 of the new 100 government buses are scheduled to arrive by March 2026.

•    State Infrastructure: Two new government depots, including one at Mudipu, are being prepared for operations.

•    Recruitment: The state has already begun training a new batch of government bus drivers to ensure the fleet is operational the moment it arrives.

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