Narendra Modi the PM of India has brought the real estate market to a standstill in the country. Thanks to his decision of demonetisation. The registration offices are waiting for the customers.
Telangana CM K Chandrasekhar Rao while supporting the cause of demonetisation explained that the revenue in the registration offices has come down drastically. But he was optimistic that it would be better in the future. The notional loss to the various state governments on stamp duty collection was estimated in excess of Rs 1,200 crore.
The counter part of another Telugu state Nara Chandrababu Naidu is like yes and no on this decison. He supported Modi, first then called it a hasty decision and then greeted Modi while he was in Tirupathi and said that AP was the first state in digitisation.
On the other hand the announcement of new real estate ventures is almost nil one can say. The realtors as such are testing the waters and adopting the strategy of wait and watch. They said demonetisation is good.Sales volume in the top eight cities has dropped 9 per cent in 2016 to 244,680 units from 267,960 units in 2015.
The property market in fourth quarter in all the top cities were impacted due to demonetisation. “None of the big cities were spared from the fallout of demonetisation took All cities have witnessed a crash, including the usually resilient Bengaluru, during the fourth quarter of this year,” the report said.
The report also noted that the demonetisation move resulted in a massive notional revenue loss of more than Rs 22,000 crore to the real estate industry across the top eight cities. “In other words, if the government had not taken the demonetisation move, the residential segment would not have suffered a revenue loss of Rs 22,600 crore,” it said.
The report noted that uncertainty is likely to continue in the next quarter. “It will be important to see how developers re-calibrate their business to the changing environment, and whether buyers capitalise the opportunity of various reforms and change.”
May be it is the real time to buy.