The recent economic reform introduced by Prime Minister Modi has grabbed Indian economy by the horns. The Rs 500 and Rs 1,000 denomination notes have been discontinued in an effort to fight corruption and curb black money circulation. This decision has affected billionaire corporations and the common man alike. Various business sectors have reported a considerable change in their modus operandi and revenue. The realty industry is not unperturbed by this measure. DS MAX Properties reviews the state of real estate following this sudden call.
The real estate sector was already in a thick soup. Compared to the financial years 2012-14, housing prices have dropped by 11% in Delhi alone. Kochi in Kerala has suffered the biggest, with a record dip of 12%. Moreover, fewer launches of housing projects happened between the financial years- 2015-2016. Demonetization will further push the prices down. But how exactly?
Large amount of tax-evaded capital is used by black-hat builders when it comes to costly housing projects. Sale and purchase of land plots, flats, bungalows, and commercial properties is done in two steps. The first step involves undocumented cash payment, which is often tax-thieved. It’s also the balance amount of the actual deal value. The second step holds documented bank transactions. These deals are marked 20-30% greater than the normal rates. Demonetization of Rs 500 and Rs 1,000 bank notes will limit cash payments. This in return, will make realty prices uniform and completely remove black money.
It’s bad news for builders but good news for property-seekers. Demand for property will skyrocket in response to the decline in prices. Realty builders, like DS MAX Properties, who play by the book, are also affected by the change in market. This is why DS MAX Properties brings you attractive real estate projects. To know more, visit our website http://www.dsmaxproperties.com/