Note ban to hit resale property market, small builders

Mumbai, Nov 08: Unorganized builders and secondary (resale) property market would be adversely impacted following the government’s decision to demonetise Rs 1,000 and Rs 500 notes with effect from midnight, according to real estate developers and consultants.

Housing prices could witness downward pressure, helping revive demand in the sluggish housing segment, they added.

“We are moving toward the cashless economy which is a sign of maturing economy. It’s a step in the right direction,” DLF CEO Rajeev Talwar said.

“The blackmoney was mostly in land purchase. But in last 6-7 years, there has been no major land buying in this sector.Big builders and organised players are already using bank channel and they would gain from this decision. Unorganised players and the secondary market would be impacted,” he said.

Asked about impact on real estate sector especially housing, Talwar said: “There could be downward pressure on prices, which will boost demand”.

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