While the demonetization drive has prompted countless debates all over the country, everybody is keen to know the various positives it brings with it. There has been a lot of speculation about the real estate market in particular. Whether prices will drop has been the greatest concern but a well informed home buyer should be re assured that it will not be the case in all cities.
Only some cities, which have seen an irrational increase in price, will be due for recorrection. A city like Pune, which has always maintained a rational price market will remain unaffected.Having said that, there are many reasons why Demonetisation is definitely good news for the real estate industry in general and home buyers. Here are a few.
- Greater Transparency:
The realty sector will be regarded as more transparent and trustworthy due to the elimination of black money. While the industry will benefit from the shift towards a more transparent and organised environment, home buyers too can rejoice in the cleaner, more transparent processes.
- Drop in Prices:
Most of the Indian real estate hubs such as Mumbai Metropolitan Region (MMR), Delhi (NCR) and more will see a price correction of about20%. With this drop in prices, home buyers can look forward to buying their dream homes.
- Low EMIs:
More cash flow in banks has increased liquidity and eventually will lead to a drop in interest rates. This means that buyers can avail loans from banks at better lending rates than what was being offered in the past, making EMIs and home buying as a whole more affordable.
- Attraction of Foreign Investment:
Improved market transparency and the positive Government norms will attract more foreign investments in Indian realty.
- Benefit to Organized Builders and Loss for Unorganized Builders:
Organized developers will gain from demonetisation as buyers will shift their focus to such properties. Unorganised players will definitely face losses.
- Affordable Housing Unaffected:
Among all other categories, affordable housing will largely remain unaffected as the sector is independent of black money. In fact, this housing category might see more demand due to greater purchasing power.
- Restoration of Stalled Projects:
Unsold inventories will now pick up due to the greater buying power of home buyers and the possible stalling of projects that were yet to be launched.