Demonetisation paved way to the clouds of uncertainty hovering the domestic market with hardly or no cash transactions. But it seems, it is not all that bad for the Indian economy.
Industry experts have made tall claims about a slump in the real estate market. But the actual scenario is just contrary. “Coming three to four months look gloomy, as there is an uncertainty among NRI buyers, but that’s about it. The market affected the most is between 50 lakh to 8 crore, anything above (which is a super luxury) isn’t affected at all,” says Gautam Trehan, Founder & CEO of Seven Konsult dealing in super-luxury real estate across Indian, Singapore and Dubai.
Effect, no effect
While talking about whether demonetisation has affected the real estate, Gautam says, “Yes, buyers have deferred the purchase with 6 months to a year. But that’s due to lack of confidence, builder and possession issues. Demonetisation doesn’t effect NRIs in a way because all the transactions happen in white. In fact, involving cash transaction can turn them off.”
Demonetisation has been imposed to avoid any cash transaction and swipe-off all the black money from the market. Transactions through digital pipelines have increased the transparency. Stories that claim real estate market is undergoing a slump are cooked up.
The real estate market has seen a correction before the demonetisation, so there’s hardly any rate slash that has happened post demonetisation. “NRIs who are interested in investing in real estate now is the right time. Ready to move in and close to ready projects could be favourable, as builders might offer some discounts. However, those would be closed or back door deals,” claims Gautam. He also stresses on the fact that once the rate of interest on loans falls, real estate market will again see a surge.