An unexpected move by Modi Government to curb black money and corruption has an impact on every sector. From hospitality to food to entertainment and finally real estate sector. But the major consequences can be seen in real estate sector.
Here, we have enlisted several key factors that how real estate sector has an impact after demonetisation and what all measures has been taken by government :
Low EMI boost investments
Buyers can easily purchase apartments, house and other properties because of lower EMI on loans due to lower interest rates. Recently, RBI has announced rate cut by 25 bps to 6.25 % which will boost property sale as the repo policy rate is at its lowest since 2010. Comparatively with such low interest rates, real estate industry will get a massive boost which will be beneficial for both end users and investors.
Greater Rate of Interest
At this point of time, buyers find investment in property is more attractive than fixed deposits. As simply buying and renting out is more beneficial which gives more return. In this way buyers are also creating an asset and earning appreciation over a period of time and at the same time they are getting income tax deduction.
Convenient and Attractive offers
Banks are flooded with economical housing loans, schemes, attractive offers, freebies, convenient and easy payment schemes.
Government schemes like Smart city mission, Swachh Bharat mission, Affordable housing scheme, Housing for all, Pradhan Mantri Awas Yojna, smart city project, and many more, will also be beneficial for developers as well as for buyers.
Government will have lakhs of crores to improve infrastructure and better connectivity to National/State highway, improved public transport, construction of new flyways etc. will also lead to boost the demand and prices of properties in cities.