Real Estate Industry Looks Confident Despite Demonetisation
Nov 20, 2018 Real Estate News
Demonetisation announced a couple of years ago was one of the most significant moves led by the central government aiming to purge the economy targeting to free the country from the clutches of black money. Real estate is one of the higher black money avenues. Real estate market initially witnessed a glitch, but after a year the market has picked up again with sales.
Post demonetisation, the financial quarters have been difficult for the real estate market. However, a genuine home buyer is somewhat happy today as the sellers cannot escape any of the situations now such as unaccounted money. No doubt demonetisation left many enticing homebuyers cash-strapped for a certain period, but this was to infuse the whole system with greater transparency.
Pankaj Goel, secretary, CREDAI NCR, said that the union government started this move which has impacted almost all industries in India. Sales volume in the secondary residential market, specifically in the luxury segment were impacted.
Effect of demonetisation for homebuyers
Genuine home buyers started their hunt at least a year or two ago. Many interpreted that the price would come down because of demonetisation. However, that was not the case and rather the market slowed for a while.Post demonetisation, the financial quarters have been difficult for the real estate market. However, a genuine home buyer is somewhat happy today as the sellers cannot escape any of the situations now such as unaccounted money. No doubt demonetisation left many enticing homebuyers cash-strapped for a certain period, but this was to infuse the whole system with greater transparency.
Most affected
Demonetisation has forced unscrupulous developers and temporary investors to make an exit. However, exceptions are always there. Those who are interested in utilising the most of this government incorporated purged business leads; then this is the right time to invest.Establishment of the alternative
Now that the paper currency has taken a backstage, digital mechanisms have been a promising and efficient system. With time, this will bring more transparency along with RERA policies and regulatory frameworks.Developer's voice
Surendra Hiranandani, CMD, House of Hiranandani mentioned there had been a significant improvement in transparency and accountability in the sector. The institutional investors have shown remarkable interest in the Indian real estate after renewed interest. A notable increase in the foreign, as well as domestic institutional investments, has also been observed.Pankaj Goel, secretary, CREDAI NCR, said that the union government started this move which has impacted almost all industries in India. Sales volume in the secondary residential market, specifically in the luxury segment were impacted.
Glaring numbers
Hiranandani quoted, there will need a massive increment in potential employment opportunities in the real estate market, which is likely to be over 80 percent by 2025. You can witness that the share of the real estate market in GDP of Indian would be double by 2025. You may also see an increase of the annual real estate supply in India from about 3.6 billion sq ft in 2013 to around 8.2 billion sq ft in 2025. So, the long-term prospects seem highly positive. Increasing urbanisation and the increasing urban fabric of Tier II and Tier III places will be the prime areas for the growth of real estate.Looking for property portal?
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