JAIPUR: Demonetization has thrown real estate sector into lot of uncertainty with demand slumping up to 75%. While some sections of the industry believe the impact will be temporary, there is consensus that rate cuts and other incentives will be the key to revive the sector. “Post demonetization, there will be a sharp reduction in speculation which created lot of froth earlier.
Now, builders will have to realign demand-supply. While the industry will undergo a period of short-term pain, growth will be organic after that,” said Abhishek Mishra of Trimurty Builders, on the sidelines of a PHDCCI-Rajasthan event on the outlook of the real estate sector after the currency ban.
There is an expectation that since cash transactions will be minimal requiring people to register a property at full value, the government needs to lower the stamp duty. “Stamp duty should be lowered as the registrations will be on the true value. A cut in interest rates will be another incentive for the sector,” said another panelist.
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