The Overall Impact of Demonetization in Pune’s Real Estate Properties

While demonetization of Rs. 500 and 1000 Rs has already taken place on 8^th November 2016, this has already created a striking impact on every industry of India, so evidently real estate industry cannot be an exception. So concerning the effect of demonetization in the real estate industry, the effect will be of short-term (3-6 months) and it means that there will not be any change in the price rates; they will remain constant yet a mass of people will be waiting and watching like there will be depreciation in the price rates.  

A Break in New Property Sector

New residential properties in Pune seem to witness a pause in the demand in the short term as observed above. However, the price rates are not likely to plummet since over the last 4 to 5 years, the price rates have soared up slower than the rate of inflation. This directs to the fact that properties are still saleable at the price rates observed during the years 2011-12 (adjusted for inflation). While the construction costs continue to enhance and the cost of compliance is also predicted to go up, builders and developers are not likely to cut down the price rates. Additionally, interest rates are bound to go down, which will enhance the demand and price rates in the medium term.

If you are planning to buy up-coming projects in Pune, the upcoming six months from now is high time to do so.

Industry on the turning point

Now while the flow of cast almost vanishes out of real estate transactions and also with the release of Real Estate Regulatory Act (RERA) 2016, the industry is destined to become out and out professional and crystal clear. As a result of this turning point in the professionalism, the confidence of the consumers will be out of the world. While the interest rates are decreasing gradually, purchasing a home will be a better and inexpensive option than renting (comparatively to the investment-wise) and this will spur the buyers who are shilly-shallying.  Additionally, with a huge amount of cash now appearing into the banking system, the government will carry out multiple infrastructure projects and ensure development in the medium for a long term.

What to expect if you wait for over six months

If you are still one the fence, then there is no other option than to wait for at least more 6 months. However, the word of recommendation is to wait for the prices to escalate higher after 6 months since by that point of time, home loan rates would not have plummeted and demand will rise dramatically. For now, it is a good idea to start searching for the relevant properties and get in touch with the sellers so that you can get the best information when you are geared up to buy.

So, by all odds, it is high time now to property in Pune Shirwal, NA plots in Ambarwadi or any other location of the city, so don’t let the current set-up suppress your spirits. So if you are looking to buy a home, move ahead and make your vision a reality.