On November 8, Prime Minister Modi in a televised address to the nation demonetized Rs. 500 & 1000 currency notes sending shock waves across the country. Experts believe the demonetization of notes may have adverse effects on the economy in the short term. Beyond any doubt Real Estate & Jewellery industries will be the worst affected as most of unaccounted cash finds their way to real estate and Gold.
Unfortunately Real Estate industry is already going through its most painful down cycle. The demonetization shall make the matters worse for the next few quarters. Let’s see how it is going to affect the industry.
Despite all the short term hassles and pain the demonetization shall bring some long-term benefits to the real estate industry. We should endure the short-term pain to realize long-term gains out of it.