Demonetisation is the most-repeated word used by an entire nation in the current times. Since 8thNovember 2016, the day PM Modi announced this revolutionary step affecting India’s economy, demonetisation has dominated every conversation and been connected with everything wrong happening in our economy. The purpose of the entire exercise was to clean up the system, and that is how it invariably got connected with real estate.
Demonetisation is the most-repeated word used by an entire nation in the current times. Since 8thNovember 2016, the day PM Modi announced this revolutionary step affecting India’s economy, demonetisation has dominated every conversation and been connected with everything wrong happening in our economy. The purpose of the entire exercise was to clean up the system, and that is how it invariably got connected with real estate.
However, it is less pertinent to debate about the connection between demonetisation and real estate than to clear a lot of myths surrounding the realty sector. It is high time to tame the wild rumours and uninformed angst about the impact of demonetisation- and other macro-economic and policy changes in 2016 – on the Indian real estate sector.
Let’s have a bird’s eye view of the entire market:
Pre-demonetisation:
The Indian real estate sector has been facing significant challenges in the past few years when it comes to sales and overall growth. With a lot of measures, the sector was clearly pointing towards a slow and gradual, but sure recovery.
* Sales & Prices: After stagnating or even declining sales for past couple of years, the 1st half of the year saw some upward movement on the back of many positive factors. Prominent among these were the overall growth in the Indian economy, attractive deals and discounts being offered by developers, and the high potential of schemes such as Smart Cities, AMRUT and Housing for All by 2020 initiated by the government. The positivity these factors induced, coupled with increasing incomes and lowering of prices, encouraged buyers to begin finalising deals that were previously put on hold. Importantly, it was not only investors but also end-users who started coming back in the market.
[Source:-The Financial Exprss]
