Real Estate prices drop by 30 % after demonetisation

Indore Nov 8: Its been 365 days that Demonetisation has been announced and its impact are still been discussed in various sectors. However, the impact on the real estate sector has been quietly visible.

Prior to demonetisation, many land purchases would take place in a two-way mode of payment that is cash and Cheque and the prices of flats in some areas of the country were high because of the huge amount of black money involved.

However, after the demonetisation and the subsequent steps taken by the government such as banning cash transactions above Rs 2 lakh and only non-cash payments for above Rs 10,000 for land purchase and the enactment of Real estate Regulation Act (RERA) had a significant impact on the prices of lands and buildings.



The prices have dropped by 30 % in some areas and the revenue of the municipalities of some states have gone up as they allowed the people to pay taxes using the old notes.

However, still, many more steps needed to be taken to reduce the black money in this sector such as tackling Benami properties, bringing real estate under GST and reducing stamp duty. making process of obtaining permits online.

Many people said that demonetisation has helped them to but lands and flats.