Stripping of currencies legal status is what is termed as Demonetization. It has been the long debated government policy now and has little or more impact on almost every citizens of our country. Effect of demonetization on real estate has been very much controversial with loads of romours and own speculations. But, lets have a look at the facts and statistics about its impact or reality market.
Most of the people thinks that it will help eradicate black money and will bring the much needed transparency which will build confidence and have the long lasting stability in the realty market. Our Hon’ble Prime Minister Narendra Modi has said that that over 5 lakh crore deposited with banks are not going to be kept idle and Banks will have to extend loans for all sorts of economic enterprises – for which they will have to bring down their interest rates, which seems to be a good sign for realtors. With falling interest rates property market will become more attractive.
Also since all the well organized companies choose to do their transactions through legal channels and financial means using bank loans and emi it will have a very positive impact on them. For those who used to do their transaction in cash will be forced to choose cheques and other legal payment modes which will eventually generate more confidence in buyers and more and more people will start investing without much of worries.
In short Demonetization is another big step along with Real Estate Bill and other government policy towards greater transparency and better customer confidence. The sector is also expected to receive more attention from foreign institutional investors given the improved transparency and better systems being in place.