prasad1
Active member
Did demonetization erase black money in real estate?
Just a couple of months ago, demonetization appeared to have taken all the remaining steam of our Indian real estate's sails. Sales in the significantly cash-driven resale homes market nosedived and prices in this segment declined by as much as 20-25%. They were already trailing primary sales prices by 25-30% in the investor-driven residential corridors before demonetization.
Developer sales in new projects were, at first, expected to be immune to the cash starvation in the economy, as this segment has primarily been patronized by end-users who use home loans and not cash. However, it quickly became evident that the negative sentiment had seeped into primary sales, as well.
It cannot be said with certainty that the demonetization move has completely eliminated black money from the sector, particularly where money that is already deployed is concerned. However, cash transactions wherein unaccounted or ill-gotten money was being parked in real estate have certainly become exceedingly difficult to execute. Also, the Benami Transactions (Prohibition) Act will help in identifying and vastly reducing the incidence of black money in real estate.
The RERA Effect This very critical Act literally holds the key to the future growth of the Indian real estate sector. Because it has the potential to clean up the sector at all levels, RERA saw a lot of opposition from both government and industry stakeholders with vested interests in the past. It was only with the arrival of the Modi Government that it received the determined forward impetus it needed to overcome all objections and clear every hurdle. The current Government understands that RERA's implementation will not only help revive end-user sentiment but help further open up the Indian housing sector to foreign investments.
Even now, we continue to hear almost daily of fresh cases of property buyers' complaints on being led astray by builders who wanted to make a quick buck off their gullibility. Unfortunately, countless first-time homebuyers are enticed by such builders with the promise of low rates and attractive add-ons and freebies - and they respond.
With RERA about to kick in in all earnest, the time has finally come for homebuyers in India to breathe free and invest confidently. No more will unscrupulous smaller builders or even larger organized developers be able to take buyers for a ride.
Yes, even brokers are covered.
In fact, even property brokerage houses will come under the ambit of RERA, meaning that agents or agencies operating in smaller pockets who did not hesitate to foist inferior or flawed properties onto their clients will be wiped out. No longer will buyers who used the services of such brokers in the past risk winding up with properties whose defects become evident only after the deal is done.
Real estate brokerages that survive this shakeup will not necessarily be defined by their size but by the manner in which they have been conducting business. There will be several small-scale brokerages which have already built for themselves a reputation for transparent practices for whom it will be business as usual post-RERA. Along with the larger organised real estate advisory firms which have a business philosophy based on ethics rather than profiteering, these agencies will gain a significantly bigger market share.
Read more at: http://www.sify.com/finance/rera-ef...nfidently-news-real-estate-re1rQrjchhifh.html
Just a couple of months ago, demonetization appeared to have taken all the remaining steam of our Indian real estate's sails. Sales in the significantly cash-driven resale homes market nosedived and prices in this segment declined by as much as 20-25%. They were already trailing primary sales prices by 25-30% in the investor-driven residential corridors before demonetization.
Developer sales in new projects were, at first, expected to be immune to the cash starvation in the economy, as this segment has primarily been patronized by end-users who use home loans and not cash. However, it quickly became evident that the negative sentiment had seeped into primary sales, as well.
It cannot be said with certainty that the demonetization move has completely eliminated black money from the sector, particularly where money that is already deployed is concerned. However, cash transactions wherein unaccounted or ill-gotten money was being parked in real estate have certainly become exceedingly difficult to execute. Also, the Benami Transactions (Prohibition) Act will help in identifying and vastly reducing the incidence of black money in real estate.
The RERA Effect This very critical Act literally holds the key to the future growth of the Indian real estate sector. Because it has the potential to clean up the sector at all levels, RERA saw a lot of opposition from both government and industry stakeholders with vested interests in the past. It was only with the arrival of the Modi Government that it received the determined forward impetus it needed to overcome all objections and clear every hurdle. The current Government understands that RERA's implementation will not only help revive end-user sentiment but help further open up the Indian housing sector to foreign investments.
Even now, we continue to hear almost daily of fresh cases of property buyers' complaints on being led astray by builders who wanted to make a quick buck off their gullibility. Unfortunately, countless first-time homebuyers are enticed by such builders with the promise of low rates and attractive add-ons and freebies - and they respond.
With RERA about to kick in in all earnest, the time has finally come for homebuyers in India to breathe free and invest confidently. No more will unscrupulous smaller builders or even larger organized developers be able to take buyers for a ride.
Yes, even brokers are covered.
In fact, even property brokerage houses will come under the ambit of RERA, meaning that agents or agencies operating in smaller pockets who did not hesitate to foist inferior or flawed properties onto their clients will be wiped out. No longer will buyers who used the services of such brokers in the past risk winding up with properties whose defects become evident only after the deal is done.
Real estate brokerages that survive this shakeup will not necessarily be defined by their size but by the manner in which they have been conducting business. There will be several small-scale brokerages which have already built for themselves a reputation for transparent practices for whom it will be business as usual post-RERA. Along with the larger organised real estate advisory firms which have a business philosophy based on ethics rather than profiteering, these agencies will gain a significantly bigger market share.
Read more at: http://www.sify.com/finance/rera-ef...nfidently-news-real-estate-re1rQrjchhifh.html
