Demonetization Move on Real Estate Industry...!

8^th November 2019 has been a historic day for both India and the United States, with many successful events. America saw the remarkable victory of Donald Trump. To curb black money, Narendra Modi (Prime Minister) announced the sudden withdrawal of 500 and 1000 rupee notes.

Encouraged by these developments, the sensex opened lower, during demonetization gold jumped by Rs 900 to a three-year high of Rs 31,750 per ten grams.

Soon after the decision to discontinue 500 and 1000 rupee notes, the common man (Aam Aadmi) went helter-skelter. In no time, the Internet was filled with advice on where you could use your leftover notes and how to make the most of it. Some restaurants and gyms in Delhi were quick to come up with attractive plans and proposals.

So, what are the motives behind this so-called strategic move? Well, it seems that the Income Tax Department has not been very successful in recovering black money, despite adopting the approach of “carrot and stick” to expose black money.

After the benami transaction bill, RERA, and GST, it is another step by the central government for increased transparency and accountability in the sector. This demonstrative decision is also likely to bring more professionalism to the field as only reliable developers who take check payments will succeed.

With this, the confidence of global investors who have seen large investments in Indian markets is also likely to be shot in the arm. About one-third of India's real estate economy is powered by black money. Therefore, the move is likely to enter black money with immediate effect and will help curb unaccounted money in the region.

Now talking about its impact, the move is likely to have a positive impact in the long run. However, in the short term, it will cause disruption. This step can prove to be a boon for the gold market and e-wallet. However, if we take a look at the stock market data this morning, most of the divesting stocks were from the leading real estate companies.

Surgical strikes on black money will reduce inflation, which will benefit real buyers. The move will bring more transparency in the country's financial system, allowing India's GDP to flow through the digital pipe, thereby improving the digital economy. This decision is positive for end-users who want to buy their dream homes. With the implementation of the Real Estate Regulatory Act (RERA), this sector is going to be purified soon and will also boost the image of India globally.

The commercial real estate in India can be categorized in the industrial property, office buildings, hotels, medical centers, malls, shopping centers, retail stores, farm land, warehouses, multifamily housing buildings & garages. In India, SuGanta Realty Services llp is buying power of people has improved due to the growing economic situation of India & which is the best cause of rising demand in property investment with us.