The recent demonetisation of higher currency note by the Modi government shook the entire nation. While the Indians were engrossed in apprehending who becomes the next President of the United States, the announcement of demonetisation created ripples in the lives of Indians irrespective of the profession or financial status.
The move is to ensure more transparency, curb inconsistencies and unfair trade practices and unaccounted wealth in our nation, leading to a truly digital and modern economy to emerge. Cash components do not play a significant role in real estate which would be a positive impact on the transaction business here.
The industry will see a major reformation as all the dealings would be through banking channels that would weed out middlemen and brokers. This is probably the best time to invest in properties in Kolkata because of the economic meltdown property investments are always a safer option.
Bank deposit rates have already fallen, bank loans interest rates would fall to 7-8 % from the present 9.25- 9.75% as banks would be cash rich and they would have money now, to lend to people. The low interest rates will attract buyers, investors, businessman and professionals to invest in properties. A 25 % lowering of interest rates would result in lower EMI on loans this will help buyers pay the instalments sooner even if the prices remain same.
Investments in property is an assets and the valuation increases over a period of time, buying and renting will fetch more returns than fixed deposits. Moreover, the buyers will also get tax benefits on home loans.
People from unorganised small scale sectors, farmers, trader, drivers etc will enter the banking system and would be eligible to get loans at lower EMIs and buy their dream homes.
Real estate would get a boost from the government sector and there would be influx of foreign investment. Banks would reach out to government securities and government bodies will have money to invest in infrastructure schemes such as Smart City Mission, Swacch Bharat Mission, Housing for all etc. We see major developments leading to a demand in the prices of properties in the near future with the city expanding and new airports coming, development of national and state highway and upgradation in the city transport etc.
There will be an overall positive impact in the real estate industry that will bring efficiency and affordability. There is likely to be an increment in investment from the private and foreign players, the freeing of trapped black money would boost the GDP.
Primarc, one of the most reputed real estate organizations, offers excellent homes in gated communities in and around Kolkata. With the real estate scenario going more in favour of potential home buyers, you can always take a step ahead towards your dream home, developed and designed by Primarc.