1. Surprise! Modi government’s black money move will make your dream home cheaper, boost ‘Housing for All’

Surprise! Modi government’s black money move will make your dream home cheaper, boost ‘Housing for All’

The unprecedented move against black money would also imply that housing across segments would become cheaper!

By: and | Published: November 8, 2016 11:52 PM
Narendra Modi, Indian Rupee, RBI, Narendra Modi DD News, Narendra Modi speech We don’t know if it was intended or not, but Modi government’s crackdown on black money could give a big boost to Housing For All!

We don’t know if it was intended or not, but Modi government’s crackdown on black money could give a big boost to Housing For All! Now, why wait for banks to cut home loan rates or prices to come down to buy your dream home? The unprecedented move against black money by making the existing Rs 500 and Rs 1000 notes illegal, may spell a short-term blow to real estate developers, but would also imply that housing across segments would become cheaper! Real estate as a sector is often seen as one of the biggest areas where black money is deployed.

Dhruv Agrawala, CEO of PropTiger.com sees the step as a fantastic move for the common man and also the real estate sector. “I believe the capital chasing land will come down. I don’t see an immediate fall in land prices, but transactions will certainly freeze. The overall decline in land prices will have a cascading effect. I shudder to think of developers who have a huge pile of inventory, they will be in deep trouble. Eventually, they will have to reduce prices,” he told FE Online. “This is a fantastic move to bring sanity and transparency in the real estate sector. I think there will be a lot of inflow of foreign capital, because land prices will come down. But, more importantly, ‘Housing For All’ would finally become a reality, as cheaper land will eventually translate into cheaper homes. While there will be short-term pain, but in the long-run, the real estate sector will benefit fundamentally,” he feels.

Also read: Where all can you use your existing Rs 500 and Rs 1000 notes for the next 72 hours?

Agrees Anuj Puri, Chairman & Country Head, JLL India, who also sees inflow of foreign capital in the sector. “The banning of higher currency notes is a major move which will help curb unaccounted-for cash in the real estate sector. We have just witnessed a tremendous step towards increased transparency in the Indian real estate industry. The effects will be far-reaching and immediate, and shake up the sector in no uncertain. Stricter measures against black money have for long been required to help bring about greater transparency, give the Indian real estate sector more credibility and make it more attractive for foreign investors,” he says. “Black money deals are more common on the unorganized market, but this practice has, in fact, been on the decrease with greater awareness on the part of buyers. Before too long, the caricatured version of black money driving Indian real estate is no longer applicable,” he adds.

Also read: Rs 500 and Rs 1000 currency illegal! Don’t worry, here’s how you can exchange your existing notes

Nirmal Jain, Chairman, India Infoline also believes that housing will no longer be a distant dream for people now. “This is a very powerful measure to curb black money. PM Modi has kept his promise of taking stern measures against black money. It will have deflationary impact in general and more specifically on real estate prices and make homes affordable, and is indirectly a boon to honest tax payers,” he says.

  1. cristi burner
    Jan 31, 2017 at 6:11 am
    You need to see how this kid is able to makeover $2000 a month selling pictures he tookwith his camera!He lays out exactly how you can do it too!This page might not be up for much longerso you need to check it out right now.
    Reply
    1. M
      MotivationalGyan.com
      Nov 9, 2016 at 6:57 pm
      That would really help the common man.
      Reply
      1. J
        Jaco Ookken
        Nov 9, 2016 at 1:49 am
        It is always the follow-ups and follow-throughs that are lacking in curbing Black money. I believe that this proclamation will also not used to its advantage for the common people. The Govt will soon relax or give another one-time regularisation/Relaxation periodically as usual.Let us hope this will not turn out as another of those bulls !
        Reply
        1. R
          Riaz khan
          Nov 9, 2016 at 1:03 pm
          Curbing black money will surely bring down the raw material cost resulting common to afford houses much cheaper, but it will be a long time to come into shape. Till then it's a big ? For real estate industry.
          Reply
          1. S
            Shnkaranarayana rao
            Nov 9, 2016 at 1:58 am
            I am with PM's move. The Indian economy is derailed long back. Some body's master stroke and Herculean efforts required to bring it back on rails. At any cost, common man need not worry about this as many of them have not seen what is 500/1000₹ note. Hope this will bring down immoral transactions,black money and fake notes to a manageable level as these crooks may be having alternate exigency plans. I pray for the life and limb of official note exchanging agencies for some time.
            Reply
            1. S
              sk
              Nov 8, 2016 at 10:49 pm
              It is all hogwash. Why the land owners will sell their lands at half the price? It is a foolish decision that will lead to chaos in all sectors. Real estate owners will wait for some time for everything to settle, rather than sell their land and houses at throwaway prices.
              Reply
              1. S
                siva oddenna
                Nov 8, 2016 at 11:41 pm
                There is big difference of about 40% to 60% between market rate and registration rate of properties across the country. deed will be made based on the registration rate which is much less than the market rate. Government should ensure to reduce the difference to zero by making reasonable increase in the registration rates.
                Reply
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