March 28, 2024

The Impact Of Demonetization On The Real Estate Market In Mumbai.

 

Cash Plays a very vital role in Mumbai’s real estate market, be it from daily over heads or the flow of liquid cash to close deals.

On the 8th of November 2016 , our prime minister Mr Narendra Modi announced that 500 and 1000Rs would no more be functional after midnight .

This created a lot of confusion amongst buyers and sellers as before that the a lot of transactions involved liquid cash. Developers were of no idea of what they do with the liquid money they have.’

 

“I had purchased property in the month of October and scheduled payments on the following month. All of a sudden news broke out stating 500 and 1000 Rs notes would no longer be functional, It was also said that this would lower the property rates in the city however real estate prices don’t really drop is a city like mumbai.Above all of this I landed up delaying payments to the developer due to the crash in the banking system”.

– Said Property Investor Mrs Priscilla Pinto.

 

With an understanding of the situation it is correct to state demonetization of 500 and 1000Rs however a good step to curb black money it has affected the stakeholders and influencers on the grounds of lending rates and purchasing power adversely and it will take a while for all systems to be up and running.

 

-By Denver Savio Dsouza.

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