DEMONETIZATION – PRODUCTIVE IMPACT ON REAL ESTATE

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DEMONETIZATION – PRODUCTIVE IMPACT ON REAL ESTATE

REDUCED HOME LOAN RATES

Banks are flooded with funds driving down interest rates on deposits and loans – Home loan rates expected to be down to 7-8%

LOWER EMIs

Apartments to come within reach of buyers due to lower EMI onloans due to lower interest rates

ATTRACTIVEINVESTMENT 

Historically at such Low interest rates real estate industry gets a massive boostas property becomes attractive to both end users and investors

INCREASED RETURN ON INVESTMENTS

Investors find investing in property more attractive than earninga paltry 5-6 % on bank deposits as simply buying and renting out gives them more return. Plus they create an asset and earn appreciation over a period of time at the same time getting income tax deductions.

INCREASED BUYERS

Demonetization will see the most money flowing inbanking system from people in the unorganized /smallscale sector: Crores of new people entering banking system means that they will also be eligible to get bank loans and fulfill their dream of owning a house

INFRASTRUCTURE DEVELOPMENT

With the increased deposits, Government will have lakhs of crores huge fund to direct towards infrastructure development such as Smart City Mission, Swachh Bharat Mission, and Housing for All etc. New Airports in town, better connectivity toNational/State highway, upgradation in city transport all lead to increase in demand and prices of Properties in cities.

Impact on Real Estate

Positive 

  • New properties are positively impacted
  • Home loans cost lesser!
  • Banks have a huge inflow of funds. Their borrowings get lower and hence the Rate of Interest can go down up to 8%*
  • More people from unorganized sector into banking system
  • Eligibility level of people who can avail ofloan goes up
  • Demand for properties improve in next6 months
  • New constructions / land acquisition slows down and pushes up demand for newproperties further
  • Expect a boom in property investments innext 6 months

Possible negative impact 

  • New Land and new constructions mayslow down
  • Resale of properties could get affected 

Impact may Result

  • Chances of prices coming down is very low as it reflectson the builder’s credibility
  • Continuously Reducing EMI – lesser flow out towards interest
  • Surplus in banks leading to great offers on EMI
  • Government accesses lakhs of crores to boost funding into Infrastructure development such as Smart City, Swacch BharatMission, Housing for all, New airports, Better connectivity,Better roads, Better price and demand for properties

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We are in the process of revising our website in consonance with the Real Estate (Regulation and Development) Act, 2016 and the Rules made there under (“RERA”), which have been brought into effect from 1st May, 2017. By accessing this website, the viewer confirms that the information including brochures and marketing collaterals on this website are solely for informational purposes only and the viewer has not relied on this information for making any booking/purchase in any project of the Company.Also not all out projects fall under RERA, and the same would be indicated clearly when the site is updated.

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