Demonetisation has led to a lot of assumptions and predictions, especially in the real estate sector. Due to the lack of transparency and unorganised ways of transaction the real estate sector has come under scanner and has been affected in a major way. As a result of which the buyers or the end users are in a confused state.
In this article we have tried to simplify few such myths that are quite dominant in the present times:
Myth: Property price will decrease
Reality: As per the industry experts the secondary market price will definitely see a price correction and will get impacted due to the presence of cash transaction. But there will be no effect on the primary market as herein the buyers are majorly dependent on the home loans. However initially the market might suffer but in the long run, the demonetisation move will stabilise the market. And when the things will get stabilised then the price might get increased.
Myth: Land transaction will be affected the most
Reality: Land deals which include cash transaction will get impacted. However, those land deals like joint ventures or corporate divestment will not be impacted in a huge way as in such cases, the transaction does not involve much cash and carried out in a standardised manner.
Myth: It’s not worth to invest in real estate
Reality: It might seem true at this point of time and also due to the past scenario. But as the market will move towards being more transparent and organised, investing in the real estate sector will become easier and smoother. This will make real estate more credible and will further help in building trust and confidence among consumers that can result in an increase in housing demand and sale.