Demonetization has come up as a big blow to the real estate industry. The market has come to a standstill as there are no buyers despite the fact that developers are ready to negotiate as they just want to get rid of the stock. The real estate market has been most affected by this decision as transactions took place in cash so that no record has to be maintained. But this has now become a question of worry for them. It is because of the simple reason that market has gone down, the prices of the flats have been reduced and still the developers are unable to get the buyers.
It is quite obvious that a lot of black money was involved and with the demonetization policy it has become nearly tough to make any transaction worthy. Earlier the developers as well as the investors would make huge amounts of profits but with the new policy things have changed a lot. It has become tricky to crack deals and this has definitely increased the pressure on the developers and the market on the whole.
Not only this many of the projects are now left uncompleted and in unfinished state as there is no money. Consequently the prices have got reduced by around 20% which is yet another setback for the developers. Things are not moving on the right track for them as one blow after the other are just bringing them into more problems. First it was the introduction of the RERA to include transparency and boost the security and now it is the demonetization which is spoiling the market. On the other hand the buyers are benefiting as things are in their favor only. Even the discounted offers have made no effect on the buyers as they are still waiting to see how the market will fluctuate in the coming time. So even the buyers are acting smartly and utilizing their time to make a great decision.
Though the market has gone down at a fast pace but still the investors are of the view that the scenario will change in the coming months. They are hoping that the demand will definitely rise with the investors trying their level best to furnish the same. So it is just a wait and watch approach which can be followed to see what changes will come in the market and how the prices will get influenced. Till then keep yourself updated.