The banned currency of Rs. 500 and Rs. 1000 has created the controversy in everyone’s mind. Few days there has been an announcement from the prime minister who said that currency of 500 and 1000 should be banned permanently and individuals can exchange the money with new currency and old currency shall be deposited into the banks. Through this new policy, the government may remove the black money from the economy and cut down the property rates which will help to create more affordable housing projects for buyers.
Let us discuss point which effects on the real estate market:
- Through demonetization, the interest rate of the banking system will be cut down on both deposits and loans.
- With low-interest rate real estate industry get a massive boost for everyone and that will attract to property
- If the interest rate is low then everyone will invest in properties. Not only the buyers but investors and businessmen or professionals will also leave no stone untouched when it comes to the real estate sector.
- If the price is still the same then buying home or apartment is easy due to lower EMI on loans as it lower interest rates.
- If the interest rate on FB is 5-6% interest on Home Loans shall come down to 7-8%
- Investors or buyers show their keen interest in investing in properties rather than earning a 5-6% on the bank deposits. It is as simple as buying and renting offers more return on investments.
- People who came from the unorganized/ small sector are earning so well and it can be clearly seen that they are also depositing their money into banks which mean that they are also eligible to buy property and can fulfill their dream of buying a home.
- Better connectivity to State/ National Highway, up gradation in transportation and developing an airport in town will lead to increase in the price and demand of properties in the city.
- If this would happen then the demand for affordable housing scheme is increase and other Affordable Housing Scheme will launch their projects in the realty market.
- Recently, HUDA has launched Affordable Housing Schemes in Gurgaon which provides the affordable flats to buyers which consist of 1 & 2 BHK flats.
The affordable housing properties would definitely affect the real estate market on a positive note and soon the rest of the market would also gain the much needed momentum.