In a time when the whole country is juggling with the old and new currency, and applying a wait and watch approach, real estate sector looks ahead for a brighter and much refined road ahead. This being a year of key decisions, one just cannot skip the date 8th November from the picture. Demonetisation came down as a surprise for the whole country and real estate sector was no exception. Stakeholders of the sector have been jittery since the news came out first. Few things have become certain, secondary market has completely dried and primary market now looks more secure, thus making this sector move towards refinement.
There are a few misconceptions pertaining in the market due to demonetisation such as, prices to fall, demand to shatter and project delays to become prominent. As a matter of fact, real estate stakeholders and buyers should understand that in the current scenario, demand for good quality development by reputed developers with a strong delivery and finance history is bound to increase. It was anticipated that the investors’ market will come to a halt, due to which people are perceiving the market as gloomy. In reality though, market is performing absolutely normal, as primary sales are taking place at usual pace, which in the long run will appreciate property prices. Projects shouldn’t get delayed as not all the work requires labour force, but machinery, and hence smart developers are tackling the situation of cash crunch by changing the type of work till liquidity stabilises in the market and at the same time, pushing and creating awareness amongst the labour to open bank accounts and use digital modes for receiving and making payments. Finally, with RERA to become operational in most states by next year and effect of demonetisation making transactions digital, we will automatically observe a much transparent realty sector in the coming year.
Taking the legacy of 70 years for Eros Group forward, the Director of the company, Avneesh Sood has his opinion about the same, as he says, “This is one of the biggest steps in the history of Indian economy that will be highly beneficial for the realty sector. Although, there is no improper transaction happening in the primary real estate market but the money which was stacked out of the banks will end up with the banks allowing them a freer hand at lending. This will in turn allow them to drop on their lending rates allowing cushion to the buyers in the primary market. With reduced interest rates, demand for property will multiply and with it, property prices will begin to appreciate. Thus, better demand, transparency in transactions, property appreciation, reduction in lending rates and uniformity in the sector will become prominent in the upcoming few months. If not revolutionise, this step of the government will definitely bring a big reform in the economy.”