KERALA: Demonetisation will help the realty sector in the long term as housing loan rates and real estate prices could drop due to its impact, according to Confederation of Real Estate Developers’ Associations of India (Credai) Kerala chapter.
Credai Kerala chapter held its state conference for two days starting November 25 in Kochi.
The chapter chairman K V Haseeb Ahamed and secretary general Najeeb Zackeria said the housing loan rates could drop by 2% as a result of withdrawal of Rs 500 and Rs 1000 notes. From the existing 9 % it could drop to 8% and later to 7%. Besides, the introduction of GST from April next year will extend more benefits to realty sector, Ahamed said.
Since there would be a scarcity of new apartment projects and the number of completed projects would be lower than the market demand, the apartment rates could rise in future, according to Zackeria. Since wages and the prices of construction materials are not likely to fall, there won’t be much drop in the construction cost. The dearth of currency notes will hit the payment of wages of labourers temporarily, he added.
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