GURGAON: CURRENCY BAN/ CHANGE WILL INCREASE DEMAND FOR PREIMERY REAL ESTATE MARKET
This decision will help institutionalize the real estate sector”.
It will not have any impact on the primary real estate segment as the buyer in this sector are driven by mortgage/Home Loan. The impact will be felt in the secondary market and the unorganized developers community where there were still cash dealing.”
“Listed Developers and organized players will not be affected from this decision,” Sanjay Bansal CEO: AffordableHomesIndia.com said, adding that there would not be much impact on housing demand and sales particularly in Affordable Segment in Gurgaon
Resale property market & Unorganized colonizers will be affected by note ban.
The SECONDRY real estate sector is going to be most affected by the government’s decision to withdraw Rs500 and Rs1000 notes to tackle black money.
Said by MD Dinesh Sorkhi: AffordableHomesIndia.com
Between 10% to 70% of the value of the property being bought or sold takes place in cash in India. With the current stock of money suddenly worth nothing, real estate deals, that were anyway sluggish, will be further affected , he said’.
“The government had been warning and taking steps to curb black money but the market didn’t read much into it. Real estate is definitely going to get impacted in a big way, but the impact will be more on luxury segment or big ticket purchases,” said Sanjay Bansal CEO AffordableHomesIndia.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.” Even will boost this segment.