The entire nation is under shock; things are going crazy since the night of 8th November 2016. Prime Minister Modi has played his master card against the fight with black-marketing and corruption by demonetization 500 and 1000 currency note. And its effect can be felt in each and every Indian household and business form, be it the jewellery or film industry.
As for the real estate sector, it has welcomed the change with an open arms, and it is believed to bring greater accountability and transparency. Also, the change will put downward pressure on the housing prices that will further help to revive the otherwise sluggish housing segment. Besides the change will lead the sector towards a cashless economy that is a well-known indicator of a mature economy.
But demonetization has not been greeted equally well by all divisions of the real estate sector. Secondary property market and unorganised builders are the ones who will witness the adverse impact. As unlike the big builders and developers and organised players, they deal in cash and are not using banking channels for operation.
CREDAI Chairman, Irfan Razack said that “It’s a fantastic and bold move by the government. A lot of money will get into the banking system. Listed entities and organised players will not be affected by this decision.” Adding to which he also said that sale and demand of housing would not be affected.
All in all, this significant move will curb unaccounted cash from the sector and is a tremendous step towards transparency.
