By Runwal Group Posted On Aug 27, 2019
Category Market trends and insights
On 8th November 2016, Prime Minister Narendra Modi announced the decision of the Government of India to demonetize all the existing ₹500 and ₹1,000 banknotes, meaning that those currency notes would cease to be legal tender from midnight on that day. He also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetized banknotes.
A move primarily aimed at wiping out black money from the system, it was a momentous announcement with a far reaching impact for the economy, industries as well as the common man. Other objectives the government wanted to achieve through demonetization was to encourage people to pay taxes for unaccounted cash, promote digital India movement to make India a cashless economy etc.
Almost all major sectors in the country were affected by demonetization including real estate. The real estate segment was hit immediately by demonetization with slowing of sales, liquidity crunch, increasing unsold stock etc. A large chunk of real estate dealing, especially in the secondary sales market for resale flats and high end luxurious properties, which were conducted in cash, were hit the most. The primary market in the real estate market, with credible developers, was less affected as their projects were financed through legal channels.
So have things turned around, in the past 2 ½ + years, since demonetization for the real estate sector?
There is no doubt that demonetization shook up the real estate sector, and along with the implementation of RERA and Benami Property Act, the realty sector has emerged stronger and is slowly losing the taint of shady transactions with dealings becoming more transparent.
In fact, the news for the realty sector for the first half of 2019 is quite encouraging with both the residential and commercial segments recording a record surge in sales.
Between January and June 2019, the residential real estate market in India hit the highest levels of supply and sales since demonetization with unit launches increasing by 21% and sales by 4 % with almost 60% sales coming from the outer areas of Mumbai, Bengaluru and Delhi-NCR regions.
Most of these new launches in 2019, almost 50 %, were in the under INR 50 Lakhs property segment. This boost in demand for residential properties is due to the concerted push (and tax incentives) given by the government for affordable housing segment.
In the commercial real estate sector, office properties across the top eight Indian cities recorded a record high of supply and transactions with supply increasing by 31% in the first half of 2019.
These are encouraging signs of revival in the real estate sector post demonetization, further boosted by wider implementation of professional business practices of transparency, accountability, less cash dealings, timely project delivery etc.
A reputed brand in Mumbai real estate since 40 years, well known for their professional business dealings, is the Runwal Group. Their latest offering is Runwal Pinnacle, 67 storeyed magnificent towers, offering luxurious 1 and 2 BHK flats In Mulund West, a most sought after central suburb in Mumbai.
Runwal Pinnacle are the tallest towers in the area and offer their residents elegantly designed, luxury flats in Mulund West. Home buyers can choose from 1, 2 and 2.5 BHK lavish apartments offering panoramic views of the surroundings as well as exclusive amenities including a rooftop Sky Deck.