On November 8, 2016 when Prime Minister Narendra Modi, declared to the entire nation about discontinuation of Rs 500 and Rs 1000 notes from midnight, the whole nation was shocked from this revelation. There was chaos everywhere, as people started to panic about the effects of demonetization on day to day life. Long & never ending queues stood outside banks & ATMs. There have been mixed reactions of people to this decision by our PM due to the hardships it has caused to common people but majority of them have reacted in the most overwhelming way.
Though the real motive behind it was to abolish the black money & also eliminate the fake currency from the market. In the long run this will definitely help to stabilize the country’s economy and also secure our nation from illegal actions. The effect of it has been different of varied sectors. Obvious ones are; inflation will drop down drastically, which will lead to the reduction the prices of various goods & services. Bank will have more deposits which will reduce the interest rates on loans & eventually due to payment of taxes; the government will have more money to spend of infrastructure & development of the country.
The Real estate sector is one of the sectors that has got affected drastically due to this move. Let’s read below the effects of Demonetization on real estate sector:
• Homes loans getting cheaper: With more deposits being done in the bank, the fund holding of the bank has gone up in shorter span of time. This in turn will decrease the home loan interest rates significantly. The expected rate of interest would be between 8% to 10% on home loan in the year 2017.
• Transparency: Due to the introductions of RERA’s amendments and demonetization affecting this sector back to back, there will much transparency in the transactions as all the payments will be made in white.
• More Demand: Since home loan will get cheaper, the demand for houses will increase as the purchasing power will be in the hands of the buyers. Also the unsold inventories may come down since demand will increase.
• Opportunities of foreign investment: With improvements and transparency in the economy there may be room for more foreign investments in the sector.
On the various points mentioned above, the real estate developers in Pune had a different take on each. Aksha Group, having many new construction projects in Pune, was much happy with the effects of Demonetization and implementation of RERA. Their 1, 2 and 3 BHK flats in Moshi – Chikali, Pune are a paradise to every home buyer. Affordable, comfortable & various payment schemes for the buyer’s makes this group much loved and trusted developer in Moshi & Chikali, PCMC.