Well Implementation of Demonetization Will Prove To Be a Profitable Proposition

“Demonetization” the word which got highly popularized off lately and has created a stir in the entire nation due to the ban on old notes of Rs 1000 and Rs 500.  The word seems new enough and interesting but it has in depth meaning to it. The whole demonetization process has split the opinion into two sections. Where even a common men have started questioning whether the demonetization will prove to be effective as the way it’s been implemented. There is no questioning to the fact that it will bring about a better change in the whole nation including the real estate sector. As the prices are expected to get much standardized and there will be cut off in the extra unwanted hiked up prices. So after this whole process, it can be assumed that real estate sector will be at much better and formal position bringing the things at much peace. This was the much-required move to eradicate the parallel economy which was in the dominating position for quite a long time now. However, in hindsight everything tends to look great but if not implemented well things may tend to fall apart. There is no doubt that objectives are good but it all lies in the implementation. 

Real estate sector is one of the most prominent places where the majority of the transactions tends to happen in black money however it’s not fair to generalize the fact that all the builders ask for making the payment in black money to save from paying the tax. The prices of property also go high due to the fact that for the developer to get certain clearances and approvals they need to sometimes bribe municipal corporation authorities, officers and also a political master at times to get the things clear and take the project forward. The positive effect could only be seen if these corrections are made from all the sides. No doubt that the whole demonetization will bring a positive revolution in our country but it is a tedious process. Also, measures have been taken to make a correction in the Real Estate Act 2016 and implementation of goods and service tax bill also bringing state level regulatory body in place so that the transactions are much transparent and clear. Also coming of goods and service tax will make the tax calculations easy and remove all the confusion.
 
Pros of demonetization

There will be fall in the real estate prices making the property comparatively cheaper to the previous times as there will be cut down on all the blown up costs.

Will bring  more transparency in real estate transactions while making everything clear to understand. Also, a majority of the transactions will tend to happen in white money.

Stop on the illegal activities like bribing the officials to get the documents cleared.

Chances of being cheated by the developer will become less as the majority of transactions would be through white income and also transactions are done under the eye of a state-level regulatory body will bring the buyers to a safe place. 

Cons of demonetization

Initially, demonetization will lead to a chaotic situation in the country for few days as everyone wants to get rid of the old notes.

Difficult to make payments to site workers and daily wage labourers bringing the construction work to a standstill also bringing the GDP down.

Difficulty in purchasing the entire property through cheque as cash has been one of the most important medium of purchase. 

Hence, to get the things properly off the rack it will surely take some time. But it also depends on how smoothly it has been executed also it’s necessary that it’s all implemented well and is equally supported and followed by the people to make it all profitable at the end for everyone.