Impact of Demonetization on Real Estate Property in Noida

Real Estate Demonetization

The eighth of November, 2016 genuinely brought a storm in entire India, after the boldest step taken by our PM Narendra Modi for scraping Rs 500 and 1000 Rs notes. This step was named ‘Demonetization’ and taken mainly to curb black money and corruption.

 This Demonetization hit numerous sectors of Indian economy, but the call was obviously for the larger good of the economy. 

 

Now despite of the fact that demonetization has lead its impact onto each and every economic sector of our country India, here in this article we will discuss the impact of demonetization on real estate in Noida.

The people who are thinking of purchasing property or doing certain sort of investment on property in Noida, are hereby informed that some information has been shared here on the basis of information and experience we have in real estate industry.

Talking about unorganized or medium scale builders, it would of course not be wrong to say that they were adversely impacted by the decision of demonetizing 500 and 1000 rupees notes. However, there was also a good chance that housing prices slashed down, thus ultimately relieving the mid-segment home-seekers.

The main motto of introducing Demonetization was obviously to bring transparency in the entire economy sector of India.

And this is exactly what demonetization has done in real estate sector.

Land transactions, which used to employ the maximum amount of black money, become more transparent with this benchmark decision by PM.  This ultimately rendered India moving forward to the maturing economy where cashless transactions will be it’s future. 

This demonetization has enabled every citizen to contribute in the creation of better and corruption free India via playing his/her part of paying the income tax returns.

According to FairPockets experts from real estate backgrounds, this in future will definitely create a scenario where  ‘housing for all’ which is currently mere a tagline will change into reality .

This demonetization, that is a great step towards a corrupt free society has not only reduced the home loans but has also benefit a common man in numerous ways via saving the amount of bribe he/she was paying to distinct channels for purchasing a home via his/her name.

This impact of demonetization on real estate in Noida has harmed the big players of real estate market who were involved in most of the cash transactions. What’s more, real estate sector in Noida now will be more of an organized market and will go hand in hand.

No listed properties can get transacted from now onwards and numerous land scams will now get saved along with numerous innocent citizens by the fraudsters who were earlier involved in the malpractice of selling a single property to multiple people.

So, over and all, according to the experts at FairPockets, demonetization might pose short term effects, however when it comes to long run, it would indubitably be a great step to be a ‘developed economy’ from being a ‘developing economy’.

Now as we are on the end of this article (that is on the impact of demonetization on real estate in Noida), cannot of course left one of the most basic questions i.e.,  How demonetization helped curb the black money in context of the real estate market. 

To understand this, let’s take a very simply situation:

Situation

A buyer goes to the seller to ask for the property. The seller quote some price for that particular property (i.e., market price). This market price will of course be more than the circle rate.

Here, circle rate is the minimum price of the property below which it cannot get sold or the price based onto which buyer pays the stamp duty of the government and the seller pay off the taxes to the government in lieu of the transaction mode.

Now, despite paying the market rate to the seller, buyer and seller put circle rates on stamp papers for saving certain bucks to go in taxes. To save this tiny number of bucks from taxes buyers, buyers bridge this gap of market price and circle rate with black money that is posing harmful impact on the society as a whole.

So, this small amount of money which every one of you tries to save from taxes is ultimately posing huge harm to the government revenues. This harm can get easily viewed via the reflection of a poor quality of public services by the authorities.

Thus, being a loyal Indian citizen, it is indubitably our responsibility to not only expect from the government to pass bills such as Real Estate Regulation and development act, but also to facilitate ourselves with deceitful dealings.

Transparency in the real estate sector which as whole constitutes for approximately around 11% of the country’s total GDP will definitely bring reduction in the circulation of black money up to certain extent.

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