Demonetization Comes with a Slew of Potential Benefits for the Real Estate Sector
In the past quarter, we saw one of the boldest financial moves in the history of modern India. On November 8th, Prime Minister Narendra Modi announced demonitization, thereby wiping outkilling over 80% of the country’s currency. Since then, every financial expert has given their views on the potential impact of demonetization on all sectors, including real estate. At The Wadhwa Group, we believe demonetization offers a lot of promise for the future.
Let’s look at some potential benefits of demonetization for the realty sector:
Decrease in Interest Rates for Home Loans
With banks flush with cash, demonetization is expected to bring interest rates down, thereby making home loans more affordable. Reduced interest rates also mean lower EMI’s, making it easier for people to invest in real estate.
Rise in Genuine Buyers
As home loans become more affordable, it should lead to a rise in the number of genuine buyers and reduce the dominance of land mafia and speculators. Demonization is also expected to bring a transparency in real estate policies, which should lead to an increase in institutional investment.
Reduction in Income Tax Rates
As the liquidity situation of the government improves, demonetization is likely to lead to lower income taxes and higher disposable incomes. This means more and more people will be eligible for housing loans, making it a favorable situation for the real estate sector.
Better Liquidity for Developers
With funds situation improving, developers can complete their projects faster, thus lowering their costs. This will also mean timely delivery and greater protection for consumers.
Greater Return on Investment
Low interest rates make property an investment option for both end users and investors. As compared to earning 5-6% on bank deposits, the real estate sector can offer a much higher return on investment. This, combined with tax benefits, make real estate a very attraction option to build a successful future.
Increase in Infrastructure Projects
Demonetization is expected to dramatically improve the financials of government, making it possible for them to invest in infrastructure. Growth in the real estate sector is closely linked to development of infrastructure. As more and more infrastructure projects come up, again this is a very positive sign for the real estate sector.
Corporatization of Real Estate Sector
As the ‘black’ money goes out of the system, it will lead to corporatization of the real estate sector. This will enable more transparency for buyers and more accountability for developers. Things like untimely deliveries will be controlled much more effectively as the sector gets more organized.
To sum it up, with so many benefits on the anvil, The Wadhwa Group wholeheartedly welcomes this revolutionary move by the Honorable Prime Minister.
If you’re looking to buy real estate, there’s no better time than now to take the plunge. Invest now and get all the benefits mentioned above. Check out the complete list of residential projects of The Wadhwa Group to find the property of your choice.