Effect of demonetization on real estate market

The real estate sector is the second largest generator of employment in India. It heavily contributes in India’s GDP; the housing sector alone contributes around 5-6% and by 2020 the whole of Indian real estate market was expected to touch US$ 180 billion but the denomination of Indian Rupee has changed the scenario.

There is a buzz all over the place about – “The prices of land is going to fall”, “It would be tough to get a housing loan”, “Getting a property in metro might become a dream in near future…”. These are some vague statements that UniMax Solutions would try to answer and bring more clarity on effects of demonitisation on Indian real estate market.

1. Undoubtedly, this decision will help institutionalise the real estate sector by bringing more transparency in the Indian real estate industry. This step would give the Indian real estate sector more credibility making it more attractive to the foreign as well as domestic investors.

2. There will be more transparency in accounting, banks will mark increased inflow of cash, and the ongoing demand for residential investments will influence the home loan rates making them friendlier to buyers. It might be a hassle to procure a home loan currently, but once the exchange of currency is smoother, there is an expected systemisation, ease to get loans.

3. Be it a mid range house or a high end property, there are no problems faced by transactions that happen systematically. Hence, bringing in more visibility in the real estate sector and more importantly shutting the doors to illegal flow of cash. This makes 2017 a very lucrative time for people with modest savings to invest in real estate.

Alay Shah a real estate broker in Mumbai says, “Real estate crash will happen slowly because people will yield to the pressure slowly and start selling at lower prices because suddenly the pool of potential buyers have gone down. I predict that real estate prices would dip to lowest by end of 2017 and then start moving up again as inflation catches up, thus this is the best time to buy the real estate”

4. These factors indicate of real estate becoming a potential future of investments and money-parking chests that can reap increasing returns for future generations.

5 Reasons to Invest in Real Estate?

“India’s real estate is back on the radar of global investors and institutes with the country emerging

as a significant investment option in the wake of China slowing down…” said Henry Chin, head of research for Asia-Pacific at property advisory firm.
The construction industry ranks third among the 14 major sectors of the economy. According to expert analysts, Indian real estate market is expected to incur more non-resident Indian (NRI) investments in both the short term and the long term. Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

We, at UniMax Smart Services, have analysed and listed a few sustainable reasons for “Why you should invest in Real Estate”. (more…)

Whom to consult before investing?

“Look before you leap” that’s the advice people usually give while someone is making a decision, and investing in real estate is surely a big decision. A wise investment could give you returns with leaps and bounds, whereas a poor investment could block your capital or might even result into loss. Thus, taking sage advice while investing in real estate is highly recommendable; keeping this in mind, UniMax has created a list of people you could go to before making the leap.

1. The Elders:

It’s an old tradition followed by Indians to take advice from the elders while making life decisions; real estate sure is an important one. Your known elders would know about your finances, how well you can manage them and what kind of property might be suitable for your personal reasons. Having been in and out (usually) all their lives with such incidences, they can share not just the technical knowledge about it, but also their experience. (more…)