While the central government of India has taken an admirable step towards eliminating the excesses of an economy that was stunted by the circulation of black money, the Real Estate market in the country seems to have found itself at the receiving end this decision. Over the last two months Government has made massive stride in improving the state of economy. Banning of Rs 500 and Rs 1000 notes led to the prevention of black money circulation that was rampant all across various sectors. Amidst economic upheaval caused following the declaration of the landmark decision in the modern history of the country, property market seems to have taken the severest of blow. So what exactly does the future has in store for the industry. The major consequences of the decision include the dawn of higher transparency and purchaser confidence in the real estate businesses. Experts have advised the business owners to exercise patience as it may take a few more months before economy could return to normalcy.
What are Real Estate experts’ verdicts?
While it is true that the topic of demonetization continues divide the experts and the public alike, there seems to be a consensus over its broader implications on the fortunes of real estate industry. Many property experts have already forecasted a renewed growth of builders. This new era of flourishing real estate business will be marked by improved transparency in the property dealings. As the centre has stated repeatedly since the time of declaration, the inconveniences present in market will short-lived and long term benefits will eventually prevail. Market is expected to return to its best in the course of the year. Once the government completes its crackdown on the Benami property dealers, banks will finally be able to cut down on interest rates and relax market regulations. As far as the buyers are concerned this development would allow them to avail of more secure and transparent dealings. It will also mean the timely completion of projects.
Post-Demonetization and real estate affairs in India
A conjunction of these factors is likely to result in less prolific start for the year 2017. With the inevitable flurry of economic activities in the market, various industries are going to find it difficult realize their full potential. However as the year progresses the real estate will gradually witness an increase in property sales. In light of the demonetization, buyers are bound to be undecided about investing in a property that they may have viewed favorable previously. In the aftermath it will be quite natural for buyers to wait and find out whether the rate of land will be further lowered. There is tangible evidence of marketing activities starting up where they left off last year before announcement of the big decision. The post affairs will undoubtedly allow the well organized builders to collect land at a considerably cheaper rate. This will inevitably lead to more number of project completions and availability of cheaper and affordable apartments.