Eastside real estate is a hot commodity, both for people looking to buy residential homes and for major companies aiming to lease commercial office space.
Will property prices go down after demonetization in India? If yes, how?
The main idea behind the demonetization move was to burn the black money. Now the effect of this move can hit the Real estate sector badly.
This is because the facts say more than 60% of the amount is paid through cash to acquire a property in India and most of the time people deploy their black money in the real estate investment.
Therefore after demonetization the prices of properties will decrease in India. The housing market is a hot-bed for the indiscriminate use of black money. Many developers, resellers and homebuyers insist on having hard cash as a component of payment in real estate deals.
Number of new projects declined in top 9 cities :
For buyers, this could be a great opportunity to get a deal, especially in ready to move-in projects, as real estate prices are likely to face a downward pressure and a few sellers may be more willing to negotiate and lower the prices of housing units.
Let’s have a look on how property prices in the major cities in India are reacting after demonetization:
Home loan rates will soften:
If you have been putting off buying your dream home because you’re not ready for the high EMIs, 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 circulation will be brought within the purview of the formal banking system through low-cost current account and saving account deposits.
Fixed deposit rates have dropped across banks
Increased liquidity has brought down deposit rates, which would in turn lower lending rates.
If you are planning to buy a new property in India then this is the best time to purchase since the effect of demonetization will remain at least for one to two years in the market.
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