Positive Effects of Demonetization on Real Estate Sector

1-    INCREASE IN NO. OF BUYERS

Demonetization will see huge amount of money flowing in banking system from people in the unorganized / small scale sector: Crores of new people entering banking system means that they will also be eligible to get bank loans to fulfill their dream of owning a house.



2-    DECLINE IN HOME LOAN INTEREST RATES

Home loan rates are expected to go down as Banks are flooded with funds and driving down the interest rates on deposits and loans.



3-    LOWER EMIs

Property will come within the reach of buyers due to lower EMI on loans due to lower interest rates.

 

Demonetization Effects on Real Estate Sector



4-    ATTRACTIVE INVESTMENT OPPORTUNITY

At such low interest rates, real estate industry should get a substantial boost as property will become attractive to both end users and investors.



5-    GREATER ROI

Investors would find investing in property more attractive than earning a trivial 5-6% on bank deposits as simply buying and renting out would give them more return. They can also create an asset and earn appreciation over a period of time. Benefits of income tax deductions is also an important part in it.



6-    IMPROVED INFRASTRUCTURE

Government will have enormous funds to boost infrastructure schemes such as Smart City Mission, Swachh Bharat Mission, Housing for All, New Airports, betterment of National/State highways, upgrade in city transport etc. will all lead to increase in demand and prices of properties in India.

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