Demonetization and the Real Estate scenario
The year 2016 has come to an end and Real Estate trends are taking a turn in 2017. Much of this is attributed to the sudden demonetization announcement made by Prime Minister Mr. Modi. Post-demonetization, the housing and real-estate segment is expected to get a much needed boost in the outskirts of metro cities as well as in tier-II & III cities.
The areas within the city limits will not face much of a crisis due to high demand and low supply scenario. However the land prices in areas around the outskirts is expected to witness a very volatile impact this year. This effect will certainly make housing prices affordable for many of the salaried buyers and a heavy easing of prices in cities driven by business communities. There will also be an easing in land prices in the medium-long term due to the higher impact of demonetization in cities like Jaipur, Surat, Indore etcetera.
Looking at the prevailing conditions of real estate in our city post demonetization, Chennai is not a sanctum of black money. Land transactions are mostly taken care of by institutions, while the average buyers are individuals who borrow from banks in order to buy their home. The whole demonetization situation has now made a majority of our population to put in all their hard earned money into banks. Banks are now held responsible and it is their duty to lend out the money and lower their EMI's. Moreover it will be easier for people to take loans and the demand for buying houses will automatically increase.
However, cities and places where most transactions take place through cash have faced quite a few challenges. This is deemed to be temporary with the actions taken by the government to bring in a clean slate. This move made by the government has had people across the country hoping for a better future.
Regarding the real estate space, this move hopes to bring infrastructure and construction on to a different level and on par with international standards.