{"id":41881,"date":"2017-01-25T18:59:04","date_gmt":"2017-01-25T11:59:04","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/disruption-on-real-estate-from-demonetisation-is-only-about-to-get-worse\/"},"modified":"2017-01-25T19:17:56","modified_gmt":"2017-01-25T12:17:56","slug":"disruption-on-real-estate-from-demonetisation-is-only-about-to-get-worse","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/disruption-on-real-estate-from-demonetisation-is-only-about-to-get-worse\/","title":{"rendered":"Disruption on real estate from demonetisation is only about to get worse"},"content":{"rendered":"


\nDeep discounts to be expected from second-tier developers
\nLong queue of people outside banks to deposit old 500 and 1,000 banknotes. singh_lens\/Shutterstock
\nIndia\u2019s demonetisation campaign will come at a hefty cost to real estate sales this year, Fitch Ratings warned in a report released this week.
\nThe ratings agency predicted that between 20 and 30 percent of property sales this year would suffer as a result of the sudden withdrawal of bills in denominations of 1,000 and 500 rupees from currency.
\n\u201cThe worst downturn in home sales is likely to occur in the first half of 2017,\u201d the report stated. \u201cDemand is likely to recover moderately in the second half as festive season approaches, and because banks have cut interest rates on home loans by 50-60 basis points over the last 12 months to multi-year lows.\u201d
\nPrime Minister Narendra Modi predicated the widescale ban on the banknotes\u00a0on curbing corruption across the subcontinent. The banknotes are commonly stashed away as undeclared wealth, depriving government coffers of millions in taxes, and used in many\u00a0illicit activities.
\nMore: India\u2019s Modi turns his attention to combatting illegal property ownership
\n\u201cDemonetisation has made it harder for home buyers to use undeclared wealth for property buys,\u201d the agency noted, citing research by property consultancy Knight Frank.
\nThe number of home sales in the country dropped 44 percent year-on-year in the fourth quarter of 2016, during which Union Government announced its demonetization campaign. The volume of new unit launches also descended by 61 percent during the same period.
\nWhile home-builders such as Lodha and IBREL are expected to be insulated from this downturn, their second-tier counterparts are likely to grow desperate, offering discounts of around 25 to 30 percent to entice buyers.
\nConstruction is expected to be one bright spot, however. \u201cWe understand that most homebuilders have been able to work around practical issues related to making payments to suppliers and contractors, and that construction has since resumed,\u201d Fitch reported.
\nRead next: Where does your country stand in a Trump presidency?
\n
\nSource : property-report.com
\nRead more…Disruption on real estate from demonetisation is only about to get worse<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Deep discounts to be expected from second-tier developers Long queue of people outside banks to...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-41881","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-aTv","jetpack-related-posts":[{"id":39323,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/india-banknote-demonetisation-to-hit-home-sales\/","url_meta":{"origin":41881,"position":0},"title":"India banknote demonetisation to hit home sales","date":"January 1, 2017","format":false,"excerpt":"\r Home sales in India could fall by up to 30 per cent in the first nine months of 2017 because of the government's ban on the country's biggest banknotes, analysts say.The cash crunch from demonetisation could also weigh on prices, Kotak Institutional Equities said in a report last week.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40213,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indian-property-sales-slump-is-worst-since-global-financial-crisis\/","url_meta":{"origin":41881,"position":1},"title":"Indian property sales slump is worst since global financial crisis","date":"January 10, 2017","format":false,"excerpt":"\r India's property market will continue to suffer next year from demonetisation after sales and launches at the end of last year plunged to the worst level since the global financial crisis, incurring a 226 billion Indian rupees (Dh12.18bn) industry loss in the fourth quarter, according to a new report.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37685,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indias-cash-games-may-hit-dubai-property-sales\/","url_meta":{"origin":41881,"position":2},"title":"India's cash games may hit Dubai property sales","date":"December 11, 2016","format":false,"excerpt":"\r Dubai property developers planning a sales offensive in India have suffered a setback as investors from the country reassess plans in the wake of demonetisation.It follows a move by the government to remove large denomination notes in a bid to tackle the black economy.That cast a cloud over the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37541,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indian-demonetisation-discounts-luxe-homes-in-chennai\/","url_meta":{"origin":41881,"position":3},"title":"Indian demonetisation discounts luxe homes in Chennai","date":"December 9, 2016","format":false,"excerpt":"\r How the mighty luxury segment has fallen Crowds gathering outside banks in India as people tried to exchange or deposit money that would become virtually worthless overnight. mdsharma \/ Shutterstock.com The demonetisation drive that is sweeping India\u2019s \u2018black money\u2019 market has laid bare some competitive price points for non-resident\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":42917,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-sector-gains-in-jaitley-budget\/","url_meta":{"origin":41881,"position":4},"title":"Property sector gains in Jaitley budget","date":"February 4, 2017","format":false,"excerpt":"\r Building of new roads set to benefit real estate sectorIndia's property sector is set to be one of the key beneficiaries of the federal budget, according to analysts.\"This has been one of the path-breaking budgets with far-reaching changes especially for the real estate sector,\" said Shishir Baijal, the chairman\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":42921,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indias-property-sector-gains-in-jaitley-budget\/","url_meta":{"origin":41881,"position":5},"title":"India's property sector gains in Jaitley budget","date":"February 4, 2017","format":false,"excerpt":"\r MUMBAI \/\/ India's property sector is set to be one of the key beneficiaries of the federal budget, according to analysts.\"This has been one of the path-breaking budgets with far-reaching changes especially for the real estate sector,\" said Shishir Baijal, the chairman and managing director of Knight Frank India.\"This\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/41881"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=41881"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/41881\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=41881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=41881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=41881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}