Quote from Mr. Banerjee, MD and CEO , Tata Housing Development Company Ltd on the impact of currency demonetization on the real estate industry.
“There has been an unwarranted fear mongering with regards to the impact of currency demonetization on the real estate industry. One can understand that a certain segment will feel the pinch – but the greater impact of this move will be the wind given to the aspirations of thousands of home buyers who firstly, have a fierce desire to buy their first home and secondly, have the utmost faith in real estate as an asset class. Even before this announcement, the primary housing market was being driven by easy access to home loans. The housing credit market has been growing at a CAGR of approximately 19 percent.
Now, this move has come as an elixir for the consumer; and, the organized real estate sector will be in a better position. More money will be brought into the banking system, while excess liquidity in the market will be normalized having a deflationary impact. The RBI which had to keep interest rates high all these years, will now have the leg room to bring rates down.
Demonetization, coupled with the implementation of RERA will make the buying process for consumers more transparent. With this move, the government has done right by the consumer and there has never been a better time to buy your dream home. We can look forward to better times in the real estate industry.”
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