2015 hrs 8th Nov 2016 brought the high tide ripples across Indian Business sector when Prime Minister in an unscheduled event announced the demonetization of Rs500 and Rs1000 notes in next 4 hrs time. The one hour address of the PM left the nation with an anxiogenic effect and sleepless nights for numerous unsung millionaires of the country sleeping over piles of currency mattresses.
Indian Housing sector itself contributes to 5-6% of country’s GDP and this sector owing to it’s behavior of huge cash dealings is bound to face major challenges in near future. The sector which has always been considered to be the prodigy of black money has suddenly closed it’s doors and refused to be tainted further. Steps like implementation of RERA has already boosted the confidence of middle class buyers looking for residential purchase more as a home rather than cash churning mixers as by the previous real estate mafias. Read News on Demonetization.
An easy way to understand the impact of demonetization on Real Estate is to do a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) which can bring out both the faces of coin to light.
Demonetization might be demonstrating some initial challenges at the moment but in long run Real Estate will emerge as a more transparent and stable sector. Price corrections will also bring the dream of home for everyone closer. Benami properties and problems like land grab etc will definitely witness a crackdown and lower incentives. In a nutshell demonetization will certainly be a call for acche din for the middle class home buyers. Read Business News.