Confederation of Real Estate Developers Association of India (CREDAI) Hyderabad announced that the real estate industry fully supports the decision of the government to demonetise currency notes of Rs 500 and Rs 1000.
The CREDAI Hyderabad members welcomed the Union government’s decision to put a halt on black money and said that the move would go a long way in cleaning up the real estate industry and weeding out unscrupulous real estate developers. The sector will move towards a better planning.
Talking to newsmen here today, CREDAI Hyderabad President S Ram Reddy “We believe that the demonetisation is an initiative to cleanse the economy and make it growth focused. It will be good for the overall economy as the unaccounted cash transactions would also become a part of the mainline economy and provide government more tax inflows enabling them to take up mega infrastructure projects and steer the growth. The banking and financial system will also be plush with funds to provide credit to the industry at a lower rate of interest, thereby spurring the economic growth and creating more jobs. This will give a major impetus to the real estate sector, as more jobs and lower interest rates are likely to encourage end users to purchase their dream homes.”
He said “Hyderabad real estate market is driven by the end user demand. The present prices for real estate in Hyderabad are the lowest amongst all the metros with no influence of any speculative operators. The funding by the home buyers is mainly through loans from banks and financial institutions which are all regulated entities. As such, cash deals are not a part of the real estate transactions by our members. All organized developers adhere to strict business principles and maintain complete transparency in the transactions. We have been sourcing funds from banks and Financial Institutions and have not been dealing in cash transactions over the last 5 to 6 years. Therefore there will not be any impact on the real estate sector and the prices will remain stable. The much awaited RERA bill will come inforce from May 2017. The effect of RERA is going to be that there would be short supply of housing stock in the market and as a consequence of this shortage, the real estate prices will go up. Also, the effect of a GST coming into effect from April 2017 is that the prices would increase on account of non-availability of a service tax set off as well as increase in the rate of tax rate. So we are of the opinion that for Hyderabad, the demonetisation will have no impact on current real estate prices, but with the introduction of GST & RERA bill the prices will go up. So the home buyers in the city should not delay and purchase a property now,” Mr Reddy said.
Source: UNI
Demonetisation to strengthen Real Estate Sector: CREDAI Hyderabad
