The ill effects of demonetization may be visible in many economic sections, barring real estate. Here’s an explainer as to how Demonetization proves to be a blessing in disguise for the real estate market in India, especially in Dwarka, NCR.
With some of the best infrastructure in the Delhi and the nearby areas, Dwarka boasts of some of the best schools, medical centres and recreational centres. Its close proximity to the International airport and the IT hubs in Gurugram and Noida makes it even more attractive to buyers.
Consider this, demonetization may have affected the buying and selling of goods or products because of lack of cash, but that has not affected the employment scope.
People will come to Noida or Gurugram for work and they would need a suitable place to stay. Dwarka would be their first and last choice, given the array of infrastructure it has.
With the upcoming DDA flats for sale in Dwarka or the society flats for sale in the city, it still remains a promising prospect for the real estate dealers here.
A Buyer Holds the Power
Cash crunch is visible in all the sectors of the Indian economy. Naturally, the real estate sector is also facing the same problem. This translates into the fact that it needs liquid flow of money.
While the main agenda of demonetization is to curb the black money, people with legitimate source of income have nothing to worry. Anyways, buying property is a long-term plan and people do the down payment on the basis of their savings. The rest is left to loans.
In fact, this gives the buyers more power to negotiate and the developers have to heed because they need the money.
DDA Plans, As Savior
Real Estate has experienced a spike because of the existing DDA flats for sale in Dwarka. DDA stands for Delhi Development Authority and their authority cannot be questioned. It is to be noted that DDA has earmarked Rs 3,753.87 crores for construction of flats in its 2016-17 budgets.
Moreover, it also declared that the registration of flats will become simpler, owing to its previous record of being a time consuming-affair. Naturally, the people’s interest in the Dwarka Real Estate will grow. Owing to its main agenda of catering to the middle and the lower middle class sections of the society, a spike in their sale can be observed as these sections plan their investments in advance. Needless to say, demonetization has nothing to do with it.
Low Interest Rates
Post demonetization, banks will have more liquid money at their disposal, owing to the deposits coming from the banking channels. This will inevitably lead to better credit terms and cheaper loans.
Property dealers in Dwarka are expecting RBI will to bring down the REPO rates by at least 1.5-2%, meaning the home loan interest rates will come down by 7-8%.
This, in turn, will increase the number of buyers, who would wish to avail the advantages of the low interest regime.