Demonetisation to impact real estate market till March 2017: Hiranandani


Construction magnate Niranjan Hiranandani, has said that the real estate sector, which has been hit badly by the government’s sudden demonetisation move, would see a turnaround after March

Commenting on reports of a likely huge slide in prices of property in the coming months, due to the anti-black money drive of the union government, Niranjan Hiranandani, managing director of the Hiranandani Group and CMD of Hiranandani Communities, stated that the move would ultimately prove beneficial for customers and builders.

“The entire country has been hit by the demonetisation move and the real estate sector is not an exception. Business will be down till March. Property prices are expected to go down by 20% in this period, till we see a turnaround in April next year,” said Hiranandani, at an event to announce launch of ‘Signature’, a 16-storey tower constructed by the group, within the International Financial Services Centre (IFSC) at the GIFT-City near Gandhinagar.

See also: Ban on 500 and 1,000 rupee notes: Short-term shock, long-term benefit for property market

Hiranandani praised prime minister Narendra Modi for taking the bold decision of demonetisation and asserted that builders need to adopt the idea of cheque-only payment for better growth.

“In Mumbai, when our group adopted the system of accepting 100% amount in white, our sales went up, because actual buyers came forward to buy the houses. If other builders also adopt this idea, it will help them in the long run. The PM has sought 50 days for things to normalise after demonetisation, but it may go on for one month more. The economy has got a cancer and our PM is trying to cure it with an operation. No one knows if this operation will cure it completely,” Hiranandani said.

 

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