Effect of Demonetization
Owning a house is really a big dream for number of buyers in Delhi/NCR region. Yet the slowdown in the real estate market is a severe blow to the builders & developers in this region. The slowdown in real estate sector hampered the market with 30% cut off in rates. The builders and developers working in the market got panic and started to search for the ways out. But for sure returning the value, what investor has invested in main and important issue. The delay in project has affected badly the demand and the demand for ready to move in units has been on a higher side. The pressure of EMI and rentals during the period of construction has also generated the market adverse.
There is less demand due to various reasons. Firstly, lack on the part of developers as they are using low quality material while constructing an apartments which leads to less trust of customers on developers .Secondly, demonetization do have have an effect on it but effect is moreover on high end properties and projects. “This is indeed a good move by the central government and we do not see any negative impact on the real estate industry in the city barring this quarter” said by J.C Sharma CREDIA Bengaluru president.
One more important aspect of demonetization is that those business communities who were not the vat registration holder or the pan holder shall become the registered dealers now. They shall file the income tax returns and shall become the registered vat dealer also. previously the papers for housing loan and other loans were not complete with them and they were discouraged regarding taking the loans. Now they shall be equipped with all the papers and shall have the IT returns which shall entail them o have the housing loans and they also would like to have the home in good residential societies.
The properties in the high priced areas which has gone up double or triple or even 5 times in comparison to circle rates of that area, these areas shall face a little slow down and the areas having lower priced properties shall get a boost. These low priced properties are going to develop and shall fetch the better sale as these do not encourage the black money and requires the full amount in white or we shakily sy the accounted money.
The sale of residential units in NCR area is usually through the cheque payments or through the housing loan. The Government defined circle rates are tentatively equivalent to or on a higher as compared to the market rates. So, the involvement of cash was not there in the dealing and before demonetization the sale price of the unit was equal to the allotment papers. So, non involvement of the cash in previous days and against after demonetization no effect would be there. The gently searching for home in Ghaziabad or nearby area shall envisaged no down fall as the rates are already rock bottom and already improvement are going on like metro rail to new Ghaziabad Bus stand will start tentatively in June,2017.
The all around development live widening of road especially NH-24 will give the boost to the properties in Ghaziabad where a lot of potential is there for upliftment and better living with peace and harmony.