Mumbai: The Supreme Court ban on construction activities in Maharashtra will be a major setback for the real estate sector, according to property experts.
Will property prices go down after demonetization in India? If yes, how?
The government’s decision to ban Rs 500 and Rs 1,000 currency notes is likely to hit the real estate sector hardest. As a sector that’s identified for menace of black money, real estate is now likely to shift towards improved transparency.
The move will probably push down property prices, including land prices, down as investors will not be able to utilise their cash in real estate and thereby forcing builders to sell at lower prices. Of the property markets, Delhi-National Capital Region (NCR) is likely to see a hard landing as the market is known for highest involvement of cash component.
The practice of investing unaccounted wealth is extensively prevalent in real estate and the government’s latest verdict is likely to make things tricky for developers. There can be an increase in projects getting stuck as developers may go slowly on construction given the liquidity stress for them.
Overall itz a great move, Actual results will come soon.. Lets see what is going to be happen..