A year after demonetisation, investor activity seems to be picking up on the back of big-ticket reforms and the prospect for the real estate sector only looks promising.
On November 8th 2016, the centre demonetised the currency notes of Rs 500 and Rs 1000 with the aim to bring back the 'black money' into the formal system and move towards a cashless economy. Now, a year later, the country and particularly, the real estate sector is still under its after-affects.
Though experts believe that the back-to-back jolt in the form of demonetisation, then RERA, the Benami Transactions Act, and lastly the GST has derailed the sector temporarily, it has only ushered in the much needed transparency, credibility and professionalism, which will lead to an uptick in the sector and take it to greater heights.
One year of demon - Experts speak:
"Demonetisation, RERA and GST came within a short span and the disruption they caused resulted in a temporary slowdown. The world is taking note of the bold reforms undertaken by the government. The big jump in the ease of doing business, which saw India leapfrog 30 levels higher in the list compiled by World Bank is an affirmation of the faith in such measures". - Pravin Bhalerao, Executive Director, IIFL Investment Managers.
"For a sector that was accustomed to cash dealings, demonetisation resulted in a massive slowdown in sale transactions. Post-reforms, customers are showing a clear preference for developers with a good past track record of delivering quality projects within the committed timeline. This should lead to a higher threshold of entry into this sector". - Amit Oberoi, National Director, Knowledge Systems, Colliers International India
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The Times of India