Being one of the boldest movements by the Government of India that was announced in just a 40-minute speech, the demonetization of 500 & 1000 rupee notes has rattled the economy in all possible ways. This decision has however received mixed reactions from everyone. The real estate sector is one of the highly affected by the Prime Minister’s move to ban currency notes of 500 and 1000 overnight. And this move has elicited a pretty mixed response from people within the sector.
The actual driving force behind this historical decision was to eradicate all the black money. Recent studies pegged India’s black market economy estimate at over 30 lakh crore that is almost about 20 percent of total GDP. This is comparatively bigger than the GDP of countries like Sweden and Argentina.
Adding to this heated situation, the industry experts and veterans said the move will hopefully increase transparency in this segment and promote bank involvement in a much dependent way.
Many builders and resale property marketers can be adversely impacted following the government’s decision; also the experts mentioned housing prices could witness downward pressure, helping revive demand in the sluggish housing segment altogether.
Reports from the Catch news said, a broker from the capital had to confess that “They will find a way to route transactions through other ways, without specifying how. There will also be a minor inconvenience for a short period of time, but it shouldn’t be of any major impact to the business.” This, however, is an agreed statement by other real estate agents as well; they altogether seem all solid not being much worried about the government ban on currency.
But the experts had a different opinion altogether, The banning of higher currency notes is a major move that will help curb unaccounted-for cash in the real estate sector. Well, we have just witnessed a tremendous step towards increased transparency in the Indian real estate industry finally. The effects will be far-reaching and immediate, and will for sure shake up the sector. The top analysts said primary markets, which comprises of new flats and residential colonies, will not see much of an impact, as most of their transactions are through mortgage and bank-routed transactions.However, primary markets will not be affected. But secondary markets could see a change indeed. It can help improve transparency on a larger scale, with a severe impact on plotted developments.
The bottom line of this move will definitely lead to making the sector more transparent and the country free of corruption and finally a better tomorrow.
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