Indian prime Minister Narendra Modi and the Reserve Bank of India have come to a congruance and decided to scrap the 500 and 1000 rupee notes from Tuesday midnight. This move is likely to hit the real estate sector the hardest.

 

With the large currencies scrapped overnight, the real estate sector, which is usually known for black money, is all set for a new dawn as the there will be a lot more transparency in the transactions.


Now as the 500 and 1000 rupee notes have been demonetised, the property prices along with the value of lands are likely to take a severe dip. Especially, Delhi-National Capital Region is likely to face the hardest of times soon.  


The president of the Estate Agents Association of India Yashwant Dalal has clearly stated that the builders who accepts payments through cheques only will also be forced to lower the prices.

 

Modi’s decision is going to make lives difficult for the developers and there is no second thought about it. The construction works which are already in progress will become slower given the condition the developers will be in because of the lack of liquid money.  

While the panic is widespread among property brokers, developers and other market participants, few are happy that the move along with implementation of Real Estate Regulatory Act will cleanse the sector.

Unlike many developers, property brokers and other real estate agents, few are happy with the fact this sector, which is widely known for illegal cash-handling, will be clean in the near future.