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31 January, 2018
The effect of demonetization on the real estate sector in India seems to be beneficial in the long run. The real estate sector in India got a setback after the government announced the demonetization policy in 2016. However, the organized real estate developers are likely to benefit from demonetization policy. The liquidity scenario in India was adverse for the real estate developers for the next few weeks, but the process ensures more transparency in transactions. Although the developers faced an initial hurdle in the process, the adverse effects in the real estate sector will be outweighed by the benefits.
The demonetization policy was targeted to reduce the unaccounted money in the economy. This will enhance the transparency of the real estate business, which will encourage investors to invest more in the properties. As a result, the industry will witness an upward trend in development. Besides, other reform policies undertaken by the government will strengthen the industry. These include RERA, GST, REIT, and FDI-related reforms. A combined effect of these measures is likely to lead to a progressive trend in the industry.
The Indian economy is largely dependent on the real estate sector, which is one of the largest sectors of employment in the country. The reputed brands and organized companies in the real estate sector are complying with the new guidelines of the government. These firms are likely to remain safe from the adverse effects of demonetization. The developers require delivering the projects on time, according to the new norms in the industry. This ensures that the buyers will face no delays in delivery of the projects. Apart from this, the real estate sector will benefit from a greater volume of investment of foreign capital.
As a result of demonetization, the government is likely to yield a significant benefit, as the developers need to comply with the new tax policies. Along with these, now strategies adopted by the government to upgrade the real estate infrastructure will benefit the industry. These include the Housing for All projects, Smart City mission, and much more. The transportation infrastructure in the country is also being developed. The improved infrastructure includes new airports and highways, apart from the upgraded roadways in the country. As a result, the demand for real estate projects in the country is increasing. As a result of these developments, the tax returns from property are also likely to increase. This will bolster the economy of the country.
In India, the buyers seek home loans to buy property. As a result of demonetization, the volume of unaccounted money in the real estate sector will be reduced. As a result, the industry will have a greater amount of transparency. You can visit 360 Realtors for more updates on the real estate sector.
Uttar Pradesh RERA: UPRERAAGT10868
Maharashtra RERA: A51900000246
Goa RERA: AGGO07180190
Haryana RERA: HRERA(REG.) 59 OF 2017
Bihar RERA: BRERAA00637/26/A- 50/2018
Punjab RERA: PBRERA-CHD04-REA0102
Karnataka RERA: PRM/KA/RERA/1251/310/AG/171113/000598
Gujarat RERA: AG/GJ/AHMEDABAD/AHMEDABAD CITY/AUDA/AA00607/230723R1
New Delhi : DLRERA2019A0057