Rs 500, Rs 1,000 banned: Resale property market, small builders to be hit by PM Modi's revelation

New Delhi: Unorganised builders and secondary (resale) property market would be adversely impacted following the government’s decision to demonetise Rs 1,000 and Rs 500 notes with effect from midnight, according to real estate developers and consultants. Housing prices could witness downward pressure, helping revive demand in the sluggish housing segment, they added. “We are moving toward the cashless economy which is a sign of maturing economy. It’s a step in the right direction,” DLF CEO Rajeev Talwar told PTI. [caption id=“attachment_3095598” align=“alignleft” width=“380”]  Representational image. AFP[/caption] “The blackmoney was mostly in land purchase. But in last 6-7 years, there has been no major land buying in this sector. Big builders and organised players are already using bank channel and they would gain from this decision. Unorganised players and the secondary market would be impacted,” he said. Asked about impact on real estate sector especially housing, Talwar said: “There could be downward pressure on prices, which will boost demand”. When contacted, JLL India Country Head and Chairman Anuj Puri said: “It will not have any impact on the primary residential segment as the buyer in this sector are driven by mortgage. The impact will be felt in the secondary market and the unorganised developers community where there were still cash dealing.” Terming it as a very good move, Puri said: “This decision will help institutionalise the real estate sector”. “Its a fantastic and bold move by the government. A lot of money will get into the banking systes,” CREDAI Chairman Irfan Razack told PTI. “Listed entities and organised players will not be affected from this decision,” he said, adding that there would not be much impact on housing demand and sales. Razack, who is chirman of bengaluru-based Prestige Estates, said there could be some impact on secondary market of big cities but primary market is largely through banking channel. Realty industry body CREDAI President Gitambar Anand said that primary market will not be impacted but resale market will feel the pinch. Also read: Rs 500, Rs 1,000 note ban: Industry terms it 'watershed' moment in fight against black money Rs 500, Rs 1,000 to go off immediately, Hasmukh Adhia calls is 'surgical strike on black money' New Rs 2,000 note, Rs 500 and Rs 1,000 banned, withdrawal limit set: Key points from PM Modi's address Rs 500, Rs 1,000 banned: Govt’s currency strike to push many towards gold