A seasoned real estate and IT professional with more than 14 years of experience in direct and indirect sales of various Products and Services, has been constantly working to redefine professionalism in Indian Real Estate.
interacted with him, to know his view on the currency demonetization drive. Here are the excerpts.
Q: With the currency demonetization move, do you think the government has taken the right step towards eradicating corruption.
A: Well it seems planned and an intelligent move since the move will curb the inflation, rotation of black money, and push transparency in business. It could be a little early to say on eradication of corruption but I feel that current the government. will hold tight control over corruption in the coming days.
Q: How this move will impact real estate sector?
A: For the real estate sector, primarily for the short term it is negative and there will befall in the transactions. For the primary property market, there will be no effect since everything is on paper and the affordable segment is quite away from the difference of circle and market rate. However, in the long term, it will help to increase sales as home loan rates will go down and maybe banks will start funding more than 80 percent of the property cost. This will bring ease for first-time home buyers. But for resale properties, things are going to change in a big way. Some of the locations have a huge difference in circle rates and market rates and at these locations major price correction can be seen.
Still, I feel that the step will bring huge transparency in the industry, and property prices will be in control. People who are doing a good kind of business will come forward and the rest will think to come over from the shock effect.
Q: How it will impact metros and tier 2 and 3 cities.
A: Overall property the market is divided into two categories- primary and secondary. As I said above, the primary market will be free from any impact due to being nascent, and most of the things are white but the secondary market will come on the state of price correction and property prices will come down in some time.
Q: It is said that property prices will come down. Do you agree with that? If yes then do you suggest that this is the right time to buy the property?
A: In the case of primary market or fresh inventories, rates will not vary so for property buyers it is good to stick with the plans. But for secondary, it may affect due to difference in circle and market rate. In the NCR region, there are some regions where the difference is very less and this will recover very soon. Hence for property buyers, this could be a golden opportunity to go for a property deal.
Q: PM Modi said next will be Benami property transaction, what’s your take on that?
A: It is very early to say anything on that as what kind of rules or restrictions will be put are not clear as of now. But for sure if Govt. put checks on Benami properties than property prices will get down, and when property prices will go down then sales may increase resulting growth in sector and transparency.
Q: As per you, what are the positive and negative aspects of this move?
A: On a positive note, things will be transparent and affordable to the common man and it will benefit especially first-time home buyers. The primary real estate market will see growth in sales and hence more development and employment will be generated.
The negative impact will be only on land, independent houses, and resale property deals where market rates are much higher than circle rate and transaction cost is noted much lesser on paper to save stamp duty and taxes.