A STUDY ON THE IMPACT OF DEMONETISATION IN REAL ESTATE WITH SPECIAL REFERENCE TO BENGALURU
International Journal of Management and Social Science Research Review
"Real Estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and the only indestructible security."Over the last 3 months since Prime Minister Narendra Modi announced demonetization, there has been a spate of differing opinions on how it is likely to impact real estate. The sudden ban on Rs 500 and Rs 1000 currency notes has resulted in a situation of limited or no cash in the market to be parked
... in real estate assets. This has subsequently translated into an abrupt fall in housing demand across all budget categories in the short term. We've had fear-mongering from some quarters, postulating that prices could tumble as much as 30% and wipe out as much as 8Lac crores of value out of the market. This study was conducted by the researcher to analyze the impact of demonetization in real estate sector. This study is based on both primary and secondary data. The researcher collected the primary data from 30 real estate companies in Bengaluru. Snow ball sampling technique used by the researcher for collecting the primary data. The collected data analyzed and interpreted by the researcher through various statistical tools. This study find out that the demonetization greatly affect the real estate in Bengaluru. 7.6 percentage fall in the market price due to demonetization, 10% drop in supply of new owner properties for sale, post demonetization and also between 5 to 10 percentages of buyers have shifted from "buying" to now "renting". Introduction Real estate is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general".