“Demonetization — the most-repeated word used by the nation since last year. The purpose of the entire exercise was to clean up the system, and that is how it invariably got connected with real estate. In the long term if we are to see its impact on the real estate sector its impact to major part of this segment was neutral. According to PTI, the leasing of commercial sector remains unaffected in accordance with the effect. Due to less acquisition of share in commercial business it is small and negligible impact is observed in the sector. With the introduction of RERA and GST the major share of investors across the globe will take India globally raising confidence of customers in reality sector” – Mr. Ravish Kapoor, Director, Elan Group.
The primary residential market and projects embraced by reputed builders were not affected significantly by demonetization. Transactions in these markets are broadly financed through legal channels of banks and housing finance institutions providing home loans to buyers. Only in projects where the component of cash was involved and those in the secondary market have been influenced. The lack of buyers constrained sellers to decrease costs, bringing about a price drop crosswise over most markets, with investor-driven markets the most affected.
"The Indian Real Estate sector was affected by this radical measure and all possible economic activities slowed down, but only in the short run. After the economic activity resumed there was a lift in buyer’s confidence. Property costs which have increased earlier have now stabilized significantly. Going forward, the Benami Transactions act and RERA will help to curb black money flow into the real estate sector, which will make India a safe place to invest in commercial and residential real estate ventures".- Mr Rahul Singla, Director, Mapsko
The transparency and accountability in the real estate sector has enhanced significantly for institutional investors. The ongoing transformation is already witnessing a massive rise in investment inflow from both foreign and domestic investors. In the coming years, improvement in India's position on corruption in the global stage will additionally add to its investor appeal.
“A sudden ban on the existing Rs. 500 and Rs. 1000 currency notes shook the Indian economy and real estate sector which was evident after the third quarter of the financial year 2016-17. Post demonetization, there has been an increased transparency in the purchase and payment system of property. One of the segments which benefited most from the demonetization drive is the affordable housing segment. Affordable housing came with lower EMIs due to various subsidies and became even cheaper after demonetization. The Indian real estate sector attracted all time high foreign investment of US $ 5.7 billion in 2016, despite demonetization. Also the performance of real estate firms on the stock market Bombay Stock Exchange (BSE) improved by 50% during 2016-17, dispelling fears of ill effects of demonetization. So we can conclude saying that the outlook for the real estate sector is thus positive”. - Mr Ssumit Berry, Managing Director, BDI Group
"The real estate industry is presently facing many challenges due to demonetization, implementation of RERA and GST. However, in the long run both the residential as well as commercial sector is expected to witness a boost due to the increased transparency and elimination of black money. Various projects too are expected to move towards delivery soon as the sector regains buyer’s confidence". - Vineet Relia, Managing Director, SARE Homes
In the long term, the real estate sector will regain a speedier development direction and is estimated to contribute around 13% to India’s GDP by 2028. This forecast is very much achievable in light of the fact that the reforms now redefining the realty landscape in India will not only incrementally boost consumer sentiment yet additionally enhance investment inflows from foreign and domestic institutional investors proceeding. We have come a long way and this ripple effect has started to fade with time.
PRESS RELEASE
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