Warangal Urban: Members of the Confederation of Real Estate Developers’ Association of India, Telangana, said that they welcome the demonetisation move as it would bring in transparency apart from bringing down the interest rates.
Speaking to the media on Thursday, Mr Gummi Ram Reddy, president, CREDAI Telangana, said people from information technology industry, pharmaceuticals, government employees and other corporates are the major customers and they transact up to 90 per cent through cheques and online transfers.
So, there is scope in transparency for transactions. Since the Real Estate Regulation Act is being set in place, the entire industry is being streamlined and the CREDAI wants all the builders, small and big, to be brought under the purview of the Act, making it a level-playing field.
He said that the demonetisation majorly does not impact on the apartments and construction sector. In fact, it is a boon for both the industry and the customers, where the rates of interest for housing loans are likely to come down after January 2017.
“India has a documented shortage of housing and homes, an aggressive domestic demand for real estate. This essentially means that in the presence of a lower home loan interest regime, a larger pool of home buyers will be able to avail loans to buy the home they always wanted,” Mr Ram Reddy added.
He further appealed to the potential home buyers to understand the long-term effect and benefits of this great move and not be misled into believing that property prices would fall.
Currently, the real estate market is at its best possible price point with no further margin with the developers to reduce prices, Mr Reddy said. The CREDAI members suggested to the home buyers not to delay and purchase a property now as the real estate prices have a chance to rise by about 20 per cent in the next one year post demonetisation.
Long wait for cash continues even a month after note ban
It has been one month since Prime Minister Narendra Modi announced the ban on 1,000 and 500 rupee notes in a bid to fight against black money in the country.
The common man is still experiencing the after effects of the move because of the cash crunch caused by such a big decision. Many of the ATMs remained shut since a month and the banks are not being given enough cash to pay the people.
Even as the district administration is taking steps to encourage cashless transactions, it will take some time for the rural population to adapt the change. For now, the common man continues to suffer.
The farmers are unable to buy the required items for the rabi season. They do not even have money in hand to pay the labourers. “This year, there was good rainfall. We had all our hopes on this rabi season. But because of demonetisation, we are unable to do anything. The trader paid with cheque after buying the produce from me. We have to buy seeds, pesticides and fertilisers. We need to pay the labourers to work in our field. The banks are not giving me enough cash. Even though we can withdraw Rs 24,000 per week, we are being given only Rs 4,000 saying there is not enough cash. What can I do with this amount?” laments K. Raghavaiah of Nallbelli.
The story is the same everywhere day in and day out. The daily routine for most people is to spend considerable time in the bank queue and accept whatever is dished out to them. The other services in the banks have been halted. Home loans, vehicle loans, education loans and other applications are not been addressed immediately as all the staff are busy attending to the huge rush of people to withdraw the money.
