The withdrawal or the demonitisation of Rs.500/- and Rs.1,000/- has serious implication to the illegally parked or black money in the real estate sector and it might take 6 months to one year to recover from the shock and its after effects.
As of now, there might be anywhere around 50,000 to 1,00,000 apartments ( ready-under construction-pre launch) which is lying unsold in Bangalore alone and those who have booked in the pre launch stage will take a GOOD BEATING.
The rental returns and the average appreciation coupled with Donald Trump`s Dramatic win and the apprehension that the IT Sector may also loose its sheen, has turned tables on the builders. The sudden demonitisation has hit the business circles very bad, especially, the small and retail sector.
The effects of this circus will be felt in the coming months.
The Income Tax department is also monitoring the entire operation with care.
The property prices will rise only in the internet, newspapers and from the mouth of the sellers, but in fact the price rise will not happen at all for quite some time.
The property prices might go down by 10% to 30% in the coming months, as the rent market is already down and many tenants are already shifting or buying cheaper apartments closer to their work place. The demonitisation will put brakes on the speeding real estate market.
Think and Plan the next move.