1. Demonetisation and Real Estate – The Impact

3. Demonetisation Rs 500 & 1000 notes not legal tender
Impact on property buyers:
No cash component
Transaction value close to guideline value
Registrations to take place at transaction value
Buyer to account for source of funds used for property purchase
Formal bank finance to become the norm
Home loan interest rates to drop

4. Impact on sellers Quoted values to be close to guideline values
Capital Gains Tax paid on entire transaction amount
Deal to be registered soon after purchase

5. Primary market – new property
Formally funded transactions to continue
Demand from professionals to drive sale along economic corridors
Builders unlikely to drop prices
Completely a buyer’s market – negotiate better for car park, fittings and fixtures
Banks to chase serious buyers
Best time for end users to buy ready built property

6. Secondary Market- resale market
Cash driven markets like Delhi NCR and parts of Mumbai market slow
Prices likely to go down by about 10-15% in about 6 months
Sellers likely to negotiate better rates with end users
Bank funding available to serious buyers
Registrations at actual transaction value
Guideline values to become benchmark values
Land transactions likely to slow down as cash exits

7. What will happen to prices
Primary markets will remain stable with formally financed deals becoming the norm
Secondary markets will settle down 10-15% on exit of cash
Speculative prices out. Land prices expected to drop as formal finance replaces cash. Less formal finance available for land purchase
Many buyers hold back hoping for lower values
Serious buyers to benefit from good negotiations
Credit Linked Subsidy Schemes to sweeten the deals for those with less than Rs 50,000/month income for budget housing

8. Supporting legislations
GST - Goods and Services Tax, a comprehensive indirect tax, aims at creating a transparent taxation system. Its enforcement will resonate in all sectors and real estate will also be impacted
Prohibition of Benami Property Transactions Act – All property to be bought in the name of the buyer who funds the deal
RERA - Consumer, developer, and regulator stands to gain once Real Estate Regulatory Authority Act is implemented in all the states. Transparency will ensure that project specific risk is reduced. This will enhance the buyer- seller relationship positively      

9. Consumer Perspective No black component in deals
Interest rates coming down
Lots of ready built stock
Values flat for two years and dropping
Deals sweetened by sellers

10. Consumer Voices
Builders can not meet their overheads without sale. No more black money to meet their deadlines. So obviously they have to reduce the prices due to competition and fund crunch or else will be eliminated. - Prakash
The idea of Rs 2000 goes against the entire cleansing of financial system. Again the same situation will crop in few years. Doubt about the real intention? – VR Ganeshun
Why is the new 2000 note re-introduced? what is the rationale behind it? - Nikesh
The govt’s decision to curb black money is good. Those hoarding black money, which affects economy are the real estate tycoons, big infra contractors and middle-men who arranged these deals - Sachin Oommen
Make all govt office processes online. Avoid multiple taxation, delink politicians from public projects, as they should not decide on who should execute project  - Karthik

11. Magicbricks Coverage
Exclusive website on Demonetisation with latest stories, videos, poll and Twitter buzz. Check it out here

12. How it impacts you!
Real Estate, last bastion of black money, under attack
An analysis by E Jayashree Kurup on how demonetisation is going to change Indian real estate. 
Demonetisation: What all will be affected?
A report on views on impact of demonetisation by Credit Ananlysis & Research Limited (CARE Ratings). 
How note ban will make real estate more transparent
An analysis by E Jayashree Kurup on how transparency a rare feature in real estate is going to be common.

13. Why you should use demonetisation opportunity to buy now Is this the right time to buy a property? E Jayashree Kurup makes a detailed analysis. How currency ban can change real estate A report on the efforts of present government to make a better and brighter economy. Property registrations dip 37% since demonetisation The number is dropping due to cash crunch, the inspector general of registration and controller of stamps says. Demonetisation of currency notes: Impact on real estate Real estate is going to be affected in many different ways, the report explains.

14. How it impacts developers
Currency ban: Input cost of developers may increase
How is the developer community going to change after demonetisation? A report.
Next 3 months is going to be disruptive for real estate
Niranjan Hiranandani, Managing Director, Hiranandani Group, talks about the importance of black money crackdown on the market.
Massive deposit bonanza for banks pulls down interest rates
A report conforming that the money flooding into banks has resulted in such a massive bonanza that it’s pulling rates down.