mangaluru the confederation of real estate developers association of india credai mangaluru has downplayed what it terms as the ill founded analysis of nonreal estate players on a major slump in prices of apartments houses post demonetization describing observations of economists and experts including the media on the issue as one out of sync with real estate sector fundamentals credai mangaluru said the worst of the news for the sector is already outdescribing reports of houseapartment prices dropping by 30 or more land prices dipping by 50 or more and gdp growth coming down and unemployment increasing as myths d b mehta president credai mangaluru told reporters that apartment prices might see a small decline during 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 taxespointing 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 that the city unlike the metros is not an investors market with buying in realty here mostly by nris and nonresident mangalureans more for future use in metros 65 of buyers are actual end users and the rest investing in realty he saidthe other factors that could only end up pushing the realty prices in the near future is the passage of real estate regulation act which will only add to compliance and legal costs he said 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 that even a mini survey carried out by credai has confirmed thisadding 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 a perfect competition and is plagued by tremendous oversupply of finished stock with legal transaction now becoming the norm mehta said there will be an additional cost of by way of taxes which will increase the cost and price primary market sale by builders is through cheque he saidreiterating 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