It is one year to the demonetisation move by the government on November 2016, and the functionaries are busy explaining the benefits from the exercise. As per data from the housing and urban affairs ministry, the real estate sector has seen a price correction by 5-10% in the period after demonetisation. In fact, further price correction is expected and the ministry is optimistic most of the nonserious and fly-by-night players will vanish soon, housing and urban affairs minister Hardeep Singh Purisaid on Wednesday.
Claiming demonetisation had the maximum positive impact on the real estate sector, Puri said this had been one of the main hub of parking black money. "There has been some correction in prices and the ultimate beneficiaries are the end buyers," Puri said.
Added to the drop of 5-10% in property prices, many developers offered freebies during the past one year in the range of 5-7%. Collectively, the discount/ correction is expected to be up to 15 per cent, the ministry said.
The data also show that the average resale price of properties witnessed a dip of 10-15% immediately after demonetisation. However, price correction has happened a little late in case of ready-to-move in properties. It is only in in the past couple of months that prices have dropped.
Similarly, new launches of projects since January has been less across top 10 cities including Noida, Pune, Mumbai, Chennai, Hyderabad, Bengaluru and Ahmedabad. Only exception has been Gurgaon which has witnessed 72% increase in new launches on year on year basis in the case of affordable housing segment under the state government scheme, the ministry data said.
Puri said the implementation of Real Estate Regulation Act (Rera), transparency in the sector and impact of demonetisation will bring a new phase where the ongoing projects will get completed. "Some states have messed up the issue of ongoing projects. But we are trying hard to push the case of genuine buyers," the minister said.
"All the initiatives we have taken will have their impact. Many of the projects will get completed by the builders or by some other entities," Puri said.