Transparency in real estate
The recent demonetization drive from the government which banned the use of 500 and 1000 denomination notes to be used as a legal tender is also likely to help the real estate sector to grow. The notes of the mentioned denominations were mostly unaccounted and were used to buy resale properties, thereby affecting new projects. Now, all projects will have a level playing field which will be beneficial in the longer run.
Moreover, Owing to the demonetization drive the deposits in the banks have grown on a handsome scale. This will help in the recapitalization of banks and will bring down the overall fiscal deficit. This will in turn lead to lowering of interest rates by the banks. Lowering of interest rates will definitely promote liquidity and thereby the customers will find it easier to buy. This is expected to take up the sales figures of the real estate sector as well. The lower fiscal deficits may also encourage the government to invest in infrastructure and low-cost housing schemes, thereby providing a boost to the real estate sector.
Due to this demonetization drive there has been considerable losses for some people as well. So now, Dubai is the new destination for real estate investors from India, where the investments can be made into properties which are tax-free. India is growing and economically its one of the world’s fastest growing countries. It has always remained a hot-spot among investors of real estate. Now, the government has made certain rules and regulations like the RERA which will induce transparency into the sector. This transparency factor will certainly give some added confidence to investors, especially the NRIs who may now find it more interesting to invest into real estate for long-term returns.
For, retail buyers also the transparency factor which has been introduced will be advantageous. This is exactly what they expect, so that they can invest their hard earned money to buy a home. The trust factor will definitely grow which will in turn lead to the overall growth of the real estate sector.