Long unending queues of weary civilians, exhausted and overworked bank officials, and general economic snag in most small and big-scale commercial sectors, this is the apparent picture of today’s India. Although demonetization received a mixed response, this historical step to eradicate black money from Indian market is believed to fetch results in the long run.
The effect of demonetization on India’s real estate sector is one of the greatly pondered upon issues at the present time. Traditionally, real estate sector is seen as a repository of unaccounted wealth. Property markets are said to assimilate maximum quantity of black money, as a fair amount of their transactions occur in cash.
But this picture is about to change. Demonetization will introduce the much needed transparency and professionalism in the real estate sector. This will weed out unscrupulous, fly-by-night developers, in turn leaving the field open to registered, organised, and authentic real estate developers like Pharande Spaces.
Only institutionalized players who conduct their business with high integrity will survive this ‘surgical strike’ on black money. Because, real estate sales which are largely driven by the investment of India’s salaried class would not suffer at all. Due to high levels of urbanization and increasing demand for residential units in and around PCMC, the growth of property market is sure to remain intact.
With the recently passed RERA Act (The Real Estate Regulation and Development Act 2016), the real estate sector is about to be disciplined and cleans off much of its stubborn taint. This Act compels 70% of a property’s worth to be deposited in a registered bank account through cheque, thus prohibiting black money from being pumped into the market.
Mandatory property registration under RERA will provide greater transparency and accountability in project-marketing as well as execution. The government’s declaration to strike ‘Benami’ properties after demonetisation will render RERA even more effective. And over the long term our real estate sector will grow into a healthier, stronger, and more candid one.
Over the next few decades, migration to first tier cities is expected to increase tremendously. Those who are below poverty line today are working their way up quite swiftly. Consequently, real estate demand in India can never plummet. As a result of demonetization and RERA, our real estate sector will only become more genuine, well-planned, and transparent.
Affordable market values today will allow the buyers to achieve their dreams at lower interest rates. As the property prices won’t drop anytime soon, this is also the best time to invest for attractive returns. The tug-of-war of momentary uncertainly will settle soon and bring a new dawn of cashless economy, efficiency, and honesty. Government’s decision to support only verified buying is about to purge India’s real estate sector of all its malevolence. Let’s join hands and make this mission an immense success.
About The Author:
Akash Pharande is Director of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran. The luxury township Puneville at Punavale in West Pune is among the company’s latest premium offerings. Woodsville in Moshi is another highly successful PCMC-based township by Pharande Spaces which is now in its 3rd phase.