Will the realty prices plunge post demonetisation? Realty index left gasping

The bold move of demonetisation by the Modi government saw a mixed reaction from different groups of people. However, the decision in spite of being a good move, its implementation was a disaster. Unavailability of easy cash and withdrawal limit has hampered liquidity. The reality sector is one of those sectors which is largely dependent on cash. According to the industry experts, the move by the government has made the industry to come to a stand still. No fresh buying is witnessed and the existing buyers are asking for fresh negotiation as they believe the real estate prices are bound to correct by more than 30 to 40 per cent.

The real estate prices are bound for correction,take for instance the Realty index which has fallen by 18 per cent since November 9. The day on which Rs 500 and Rs 1000 notes wore scrapped. Residential and commercial complex companies like Ajmera Realty and Infra India have lost 22.55 per cent since November 9. Kolte Patil Developers has lost around 19.39 per cent. On the other hand, Godrej Properties, Oberoi Realty, DS Kulkarni have lost 12.45,9.27,9.02 per cent respectively. However, DLF, Dilip Buildcon, and DB realty have not lost more than 5 per cent.