Will It Impact Real Estate Prices?
27th November 2016
27th November 2016
Based on routine and expected ill informed rumours and chain reaction out of misleading inputs and discussions post government’s demonetisation move, real estate is expected to be one of the worst-hit sectors, as cash is considered to form a major component in many transactions in this sector.
Many believe or predict that land and property prices could fall as much as 20% to 25% in the next 3 to 6 months.
Both investors and end users are now in a “wait & watch mode” and are waiting to see if prices will fall in the short term.
However, good news is that these assumptions & fears, can at best be called unfounded and based more on public hysteria, panic and confusion, than based on actual facts of the industry.
Further, all those knee jerk reactions are coming mostly from those who have barely or never dealt in real estate and who are not aware of both market fundamentals and various categories of products available.
Here is why quality developers and long established and leading property consultants strongly feel that there is little room for any major price cuts or correction in the organised sector of Indian real estate industry, barring the rural areas :
Those carrying out sale and purchase of plain land parcels in far off suburbs or rural areas or agricultural land will undoubtedly suffer as these transactions tend to involve significant cash involvement – sometimes as high as 80% of the transaction value is paid in cash.
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