Banning of R.500 and Rs.1000 notes: Impact on real estate sector
The first and most significant to take a hit by the government's decision of scrapping notes of Rs.500 and Rs.1000 denomination is the real estate sector. As most dealings here take place in cash, the already sluggish sector will see a thundering crash. To quote Pradeep Mishra, research head, Indiazhousing.com- “We will definitely see a price correction here although it’s too early to say by how much. In the affordable housing segment the impact will be minimal.”
A third of the sector thrives on black money wherein cash changes hands in several cycles booming up the buoyancy of prices. Common lower to middle income class could only dream of owning a house in one lifetime due to such sky rocketing prices.
Despite several warnings by the government, cash hoarders and black marketers of the real estate sector were slow to respond. In one smart stroke, the ground beneath their feet has been swept away, leaving them perplexed and running for cover.
The erstwhile held up cash, when released into the economy can be put to several good uses. The honest taxpayer will finally get his due and that dream house or property of his own at affordable prices.