As soon as the higher currency notes of ‘500’ and ‘1000’ are banned by the Indian Government, the entire business environment in India has faced Real estate on Costa Blanca an unexpected shake up. This demonetization exercise is counted as the third one in the Economic history of India if the one before independence is considered. Just after this surprise announcement done by the Indian Prime Minister Mr. Narendra Modi, all the major business sectors have started experiencing agonizingly slow growth. Though it will be too quick to judge the post-effects, the consequences of demonetization are already visible in the real estate sector.
In past years, the Indian real estate sector has experienced a huge entanglement of cash transaction and black money. That’s why this sudden cash crunch has caused an unanticipated blow to the sales market. But this short term issue can easily be considered when it comes to re-organizing the real estate sector with transparent transactions.
The game of survival in the real estate industry is now on for the fair players who have been continuing their businesses with honesty. It brings along some good news for the end-users also. Now the buyers will no more be cheated or deprived of their rights and they need not worry about the rapidly rising costs of the properties. They can enjoy assured on-time delivery of their selected real estate properties in Kolkata without exceeding their affordability.
On the other hand, the banks are now stuffed with a huge of amount of money submitted by the mass and they are ready to give it away in terms of loans. So, comparing to the previous situations, getting loan for property purchase will be easier now. In addition, the lower rate of interest for fixed deposit is also convincing the common people to invest in real estate properties in Rajarhat, Kolkata rather than creating a new savings account. Real estate means property business which plays an important role in the economy of any country. We can explain in these words that as you know blood in the basic ingredient for life without which there is no question of life. Same like this sound real estate plays a significant role in the economy of a nation and makes a country alive.
The residential real estate provides housing for families. It is always the paramount cause of capital and reserves for many of them. Commercial real which includes apartments multi stories buildings, big shopping malls, and plazas, develop big housing societies and colonies in addition to creating unlimited sources and spaces for jobs in the market. Real estate income provides a source of financial taxes and revenue in millions thus real estate contributes trillion of dollars to the nation’s financial productivity.
Real estate also provides a big source of income for uneducated people who can involve themselves in sales and marketing of property in the local market and this can be done without investing a penny. That’s why a drop in housing construction was a big contribution to the recession’s higher unemployment ratio. In the construction activities of the property, many more unemployed people can earn a lot.
The importance of real estate can be evaluated by the fact that construction in a county is the only and basic source for measuring GDP. It affects many other areas of economic well-being that aren’t measured as well. That drops the worth and cost of all homes whether proprietors are vigorously selling it or not. It reduces the number of required home loans available to the owners. They will badly cut down on customer spending. As you know decline in customer spending attributes to a descending spiral in the economy of a country which causes to further unemployment, more declines in income and more declines in customer spending. In this situation, if the government does not consider reducing inter rates than it is possible that a country can sink in the economic turmoil which ultimately leads to inflationA great financial depression was seen in the year 1929 which was about 24 percent decline in the housing market. Another factor like reduction in oil prices in the early year 1980 was considered to be attributed to the decline of property value. Some economic surveys proved that housing price declines of 10-15 percent are enough to eliminate equity. That generates an increased result that ultimately creates severe discomfort for homeowners. This also affected too many real estate people in Florida, Nevada, and Louisiana that had already faced such economic decline in the real estate and the government and financial institutions were compelled to grant easy loans to the deserving people who were even unable to maintain themselves.
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