Wondering about the real estate out turns, firstly we envision its market mosaic to be very complicated and opaque. Its upon how the figures moves in the forth coming consecutive months and how the players perform in this phase. The impact would largely sway the unorganized sector. Due to this initiative, the current projects shall suffer delays due to the sudden large scale remodeling. But on the other flip, we also can envision a speckles and crystalline form of the real estate industry.
Market shall see a short term deceleration because the impact due to demonetization has arrived as a blizzard and it will definitely take time for the stakeholders in the sector viz. the buyers, the sellers, the owners, the developers and the brokers evaluate the fallout. The buyers and sellers will get affected in the middle of transactions, as the liquidity would be involved in such deals.
Market shall see an enhanced rental market and a better home ownership longing as a mid term impact. The secondary market that is majorly cash dependent is going to be enormously hampered. The resale properties would become cheaper which would result crushing the primary market along. In order to attract the buyers, developers would offer discounts and incentives on new projects. The deceleration in the housing demand would be advantageous to the rental market. An approximate assumption of around 10–20% hike in the rentals of both commercial and residential market.
In the long term vision, we could assume and expect the organized order in the real estate sector. Eventually the projects approvals will be faster which shall result in the gradual reduction in the total constructional cost and hence the per unit cost.
This sector might observe that the cash transactions may get removed and majorly the trade sharing shall depend completely on the online means. We shall be obliged as we would be lucky enough to see an era transformation and see an exclusive real estate industry which will be transparent, organized, ethical and extortion free.
Author:-Pankaj Naagpal —