Share on Google+0Tweet about this on Twitter0Share on LinkedIn0Share on Facebook0

Everyone is talking about how the Real Estate would be the worst hit sector due to demonetization of Rs 500 and Rs 1000 currency notes announced by Government of India on the 8th November, but amidst this chaos, there are a few positives that we can take from this historic declaration. It’s no secret that the property markets in our country were hugely inflated. They are an easy place to park undeclared money and evade taxes. This is a historic reform  in order to curb black money and is one of the boldest steps taken by the government to tackle corruption.

 realestate-kjph-621x414livemint

The banning of higher currency notes is a major move which will help curb unaccounted-for cash in the real estate sector, said Anuj Puri, chairman and country head, JLL India.

“We have just witnessed a tremendous step towards increased transparency in the Indian real estate industry,” said Puri. “The effects will be far-reaching and immediate, and shake up the sector in no uncertain way. Stricter measures against black money have for long been required to help bring about greater transparency, give the Indian real estate sector more credibility and make it more attractive for foreign investors.”

 

 

A few positives are as follows:

  1. The decision will help in wiping out the unorganised players from the sector who were actually involved in transactions dealing in cash which acted as safe haven for people having tons of black money. Investing in properties helped them in evading taxes as well as helped them in multiplying their wealth at the same time.

 

  1. With the black money sucked out of the system, transparency will be restored as all the major transactions will be done through financial institutions and not by cash. This will be a big boost for builders like us i.e. Olympeo Infrastructure, which has a professional team comprising of graduates from IIMs and IITs. And with the use of CRM we are committed towards providing clarity and every minute detail to the customers.

 

  1. With this one move developers will see increase in sales as the secondary market will come down as suggested by Samir Jasuja, Founder and MD of PropEquity and he quotes “You will see a lot of secondary market transactions coming down in volume. For every ten buyers out there, there is only one buyer willing to pay all-cheque. And usually, people want to take at least 20 to 30 percent of the amount in cash, but this will now go away. This will also act as a big de-motivator for people who were generating more and more cash to be able to park into real estate all this time. It will create a lot of transparency in the long term”.

 

  1. There will be a correction of 25-30% in the prices in the luxury and ultra-luxury segment due to the deflation but not in Affordable Housing segment. So, this is the right time to invest in projects like Olympeo Riverside, and sit back and enjoy the benefits of healthy returnAnd once the shakeout happens and black money is drawn out of the system, right-priced homes will be built for those who want to live in them.

 

 

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of Olympeo Infrastructure LLP and Olympeo Infrastructure LLP does not assume any responsibility or liability for the same.

 

The following two tabs change content below.

OlympeoResearch

This text coming from admin user profile.