Bengaluru: Prospective home buyers are hoping that property prices might go down post-demonetisation, according to real estate developers and housing finance companies. However, with the reduction in the lending rate for housing, the real estate business is expected to flourish.
“Clearly, as and when liquidity comes into the market and banks and lenders reduce the lending rate for housing, there will be an easy access to credit in the market and that will lead to a surge in the real estate business,” said Anil Sachidanand, the MD and CEO of Aspire Home Finance.
Sachidanand, however, said that there is a “halt” in the entire decision-making process on big purchases as people expect a dip in property prices. The CEO of Artha Real Estate Coporation Limited, Suresh Rangarajan, also feels that the effect of demonetisation on the real estate sector is nothing but a “temporary lull”.
“Currently the demand for real estate is low, which means that the supply is high. Some people might get a good deal but it is not the trend. Investing in real estate is a big decision for anyone. So, for the next two to three months, people might postpone their decision to invest in real estate as they are uncertain at this point of time,” said Rangarajan.
According to him, in the end-user-driven markets such as Bengaluru, Hyderabad and Chennai, government registration value is so high that the developers will barely try to match it and there is “very little black component” involved in it.
“Post-April or new financial year, there is going to be too much liquidity in the market and interest rates will drop, and rental and EMIs will almost match up. This is going to impact the real estate market positively,” Rangarajan said.
