Home buying has become more affordable and accessible to the common man thanks to the measures that demonetization has brought in. Developers are no longer demanding hard cash and this has been a major reason to rejoice for the home buyers. Transactions are becoming digitized leading to better transparency. These are some reasons why demonetization is a good measure for home buyers.
In the recent weeks after the Demonetization spell, many changes can be seen in the Real Estate market. Since last November when the Prime minister announced the scheme, many people in the real estate world and its observers spoke at length about how it would affect the market. Many opinions reveal that demonetization has certainly caught people off guard.
One of the foremost features of the Real Estate up until recently was the trend of paying ‘Hard Cash.’ Developers felt that the radical measure will result in fall in prices. Many people looking for properties have come to the realization that betters deals are to come. Demonetization brings with it many positive changes to those looking to buy properties. Looking at it from three scenarios, short term, medium term and long term – we get a better picture of the issue in entirety.
In the short period, when the notes have become dearer, there has been a reduced spending. This translates to a fall in demand. Many developers who have taken notice and are looking to adjust the rates now to attract the market. Home buyers can expect a drop in prices. This is hugely beneficial to prospective buyers.
For the medium term, many individuals looking to get into deals for the immediate future will do so. Given the fact that Demonetization has been encouraging more to go cash-less, home buyers stand to hugely benefit from more transparent transactions. Prospective clients are looking towards reaching out to real estate developers to get into deals for both middle and higher income household requirements.
In the longer term, the market will offer many different properties for various sections of the household incomes. With the new Budget granting the status of Infrastructure to Real Estate sector, there is an anticipation of higher long-term returns. In terms of long-term returns, the Demonetization makes most of the cashless transactions. With more and more transactions becoming cashless, the homebuyer can avail more interest rates. This will lead to a quicker accumulation of funds and hence more investment opportunities.
Demonetization has brought in a fresh lease to the real estate sector and home buyers in particular. The common consensus is that there is a higher transparency in the market and home buyers are not hesitant to enter into transactions.
The benefits of any measure reflect in transactions after some time. It is important to see and observe the effects to fully understand the true colors of this move. Many initial reactions to demonetization have been pessimistic. However, looking into the actual repercussions into these last three months, we can clearly see that home buyers stand to benefit from it immensely. After the initial queries and clarifications, demonetization has put in place a sound mechanism of operations in the Real Estate market. Home buyers are looking to invest having taken into account the cash crunch. It is no longer being seen as a measure that may negatively affect the market.
Demonetization has been quite an opportunity after the past decade of a market lull. In Chennai, the liquidity crunch has been leading the market towards the benefit of the buyer. Prices are stabilizing and cost of debts is falling. Financially, it is a better picture today than a few years back. With the digitization of funds, the sector is becoming more and more organized. Malpractices and misappropriations are reducing and bringing clarity in the market. Now, home buyers can confidently invest in properties thanks to demonetization.