The currency note ban of Rs 500 and Rs 1,000 have given a real blow to the real estate projects in Ahmedabad. The property market in the Ahmedabad city has seen slow growth. The growth of the real estate sector has become stagnant. The situation will continue to be the same until and unless there is clarity on the stability of the market.
The black money has been affecting the whole real estate economy for some time. The sector is considered the safe haven for pushing unaccounted money. There is an immense concern among property buyers for the real estate market. Property in Ahmedabad is witnessing slowdown due to lack of demand. There are certain concerns, which have risen due to this sudden announcement, however; it will be beneficial in the long term for the real estate:
- Short-term effects– The ban on the currency notes of Rs 500 and Rs 1,000 is bound to create a dearth of black money for transaction, especially for the resale of the properties. The primary property market is also facing the problem now. Automatically, there are problems in the Tier 2 Tier 3 market. In fact, the sale of the luxury home segment will get affected.
- Long-term benefits– The lack of transparency in the real estate market was the main reason for the inflow of black money in the real estate. The government is focusing to build a cashless economy. The property market would have more transparency in the near future. The new demonetisation policy will attract foreign investment in the real estate market. It is expected that all the unaudited transaction will come under the government’s scanner. When there would be no black money to invest in the real estate then the builders in Ahmedabad will be forced for drop the prices of the of the residential. It estimated that prices of the properties would witness drop by 10-30 per cent.
There will be a serious impact on the real estate industry. Things will move in a positive direction over the next few years. There will surely be boon of the real estate market. People can afford buying properties in various cities all across India.