From the midnight of 8 November 2016, Government took a much-awaited step for increase the reachability of affordable housing for the genuine end users. The decision to ban Currency Note of Rs. 500 & Rs. 1,000 is expected to hard but positively on Indian Real Estate Sector. As a domain, that’s recognized a safe home for black money, now real estate is expected to move towards transparency.
This step is expected push property value; investors will not be able to organize their black money in realty sector and in that way forcing real estate developers to sell the property at lower prices. In a comparison to other markets, Delhi NCR real estate is about to observe an emergency landing as the region is recognized for the highest involvement of cash component.
According to the real estate experts, real estate markets will see approx 30% modification in prices. Even real estate developers who claim that they agree to only cheques will also be required to lessen property value as per the current market condition. Apart from big property markets of tier II and III cities will be bad affected. Prices of the land will also go down as these transactions used to witness in any case 30% cash component.
The practice of applying unrevealed money is very common in realty and the Modi government’s latest hit is expected to make things more difficult especially for the local real estate developers. There can be a sudden rise in the developments getting the delay as builders may stop the construction because of liquidity stress.
This step creates a downward pressure on the cost of everything including realty. It is an excellent opportunity for the end users who are dreaming of buying a home from long time. The move will bring transparency in this sector.
Even if the panic is widespread in the middle of real estate broker, builders and other who are attached with this sector who are practicing wrong, many people are happy with this step and current RERA rule (Real Estate Regulatory Act) will purify the field.
According to the many reports on real estate, unsold inventory across tier-I cities raised 12% and was attributed to new developments with the highest increase seen in Kolkata, after that Ahmedabad and Mumbai Metropolitan Region.
But in general view, this major step from the cabinet ministry is very helpful for the middle & upper middle class end users. Everyone will get excited and praise the government for taking this step.
Some important points to remember for exchange the old notes
- Exchange Rs 500, Rs 1, 000 notes showing ID proof.
- Deposit old Rs 500, Rs 1000 notes in banks, post office accounts.
- Can exchange notes between November 10 and December 30.
- No restriction on card payment, cheque, DD, electronic funds transfer.
- Rs. 4, 000 withdrawal per day, Rs. 10, 000 withdrawal per week.
