Demonetization Impact on Affordable Properties

Demonetization Impact on Affordable Properties

A memorable day and date, Tuesday, Nov 8th2016 when India went to sleep with a grabbing news of 500 and 1000 Rupee Notes Ban. And waking up to the chances of Donald Trump winning the US elections and attaining the 45th President position of US. Both these developments got a turmoil in Indian Stock Market. Real estate stocks took a beating, driven largely by the impact of demonetization on the sector. Indian share markets have unlocked the day on a flat memo with irrefutable bias.

The proclamation has already started showing its influence on the real estate sector by creating somber pressure on transactions and slowdown in property deals. So, let us know what kind of change India’s real estate market, which will witness major change after such a bold move by the government.

Its effect has already been seen as a big bag for Indian Real Estate But, is there a need to panic, if you are searching for a home? I think lot of people are facing same question. The answer is reverberating NO!The demonetization step has somewhere proved to be favorable for Real Estate in India and major bang for the affordable segments which is apositive news for Real Estate.

What is going to be the impact of currency ban on affordable segments and what are the opportunities which you can yield?

  • There is no refuting that the past few quarters have been grim for the real estate industry in India. Sluggish economic conditions, as well as impractical real estate prices have created a huge pile of inventory and stoppage in the market. So far, real estate developers have held prices despite depressed demand for property. Saying it precisely, demonetization of 500 and 1000 rupee notes will enhance to the woes of the industry, as cash transactions will be slurped out of the economy.

 

  • Hypothetical buying will take a further hit leading to improved build-up in inventory and pressure on builders to relax prices.AshwinSheth, CMD, Sheth Corp, said that reputed builders wouldn’t be effected a pinch as they make bank channels for their transactions and with the RERA Act and demonetization step, surely positive reforms will be seen and the growth in affordable housing sector will be a bliss. This is like a win- win situation for the developers and the home buyers.
  • A bloom for affordable section.Affordability is a big factor for homebuyers these days in the realty business. It’s like a big zeal for them to own a house. With the drop in properties prices, the demand for affordable housing will pick up. The use of black money in the affordable housing segment is minimal and most of the time bank loan is availed for fulfilling the financing needs. There will be an increase in demand for bank’s working capital and this step is taken by the government to focus on affordable housing for the people. I hope this will elevate the main axiom of the government.
  • If you are planning if buying your dream home because you’re not ready for the high EMIs, there is a ray of hope and you can expect to have more breathing room now. This is because lending rates are likely to come down further. Due to demonetization, a large amount of cash in exchange will be fetched within the purview of the formal banking system through saving account deposits. Since, this will reduce the dependence of banks.

The Real Estate market has come as a surprise with the hoarding of black money, reduction on interest pressure, reduced EMI’s and the legal bank transactions have cleared a way for the people looking for affordable homes.

 

If you are salaried or self-employed person, the coming 6 months will be best time for investment. If you are in a hunt of such affordable property on which you can stamp as your first owned home, then this blog will surely be helpful for you. This is the best time when prices can be negotiated with builder and the options just go wider.

Tata Value Homes, Noida Sector 150 is that upcoming affordable project by well- renowned builder Tata Value Homes, subsidiary of Tata Housing.

Why a resounding YES to this project?

Project Configuration: 2BHK and 3 BHK capacious apartment.

Location and connectivity: prominently spotted at Noida Sector 150 with easy approachability to all major zones of NCR. Top notch schools and educational institutes, reputed hospitals, local markets, branded malls and much more is here setting a benchmark for all the destinations.  

Jaw- Dropping Amenities:nonetheless, the house is stuffed with gymnasium, basketball court, badminton court, community hall, rain water harvesting and swimming pool.

Its USP is built by well- established builder in affordable range which is best time to grab, as you never know what happens next. Till the time when market is in your favor you should fetch the benefits and should seal the project to safeguard your future.