Different acts and measures were incorporated at different points of time asking to declare the undisclosed money earned by all the means and thus the move was a calculated one, after several warnings.
The PM has been very precise in his actions and determined to curb black money and eliminate corruption. The move indeed was much needed.
To gauge the impact as a whole is a little early, however, the impact on the real estate sector was immediately visible. The factors contributing to the same are a tremendous drop in sales, liquidity challenges due to lack of cash and high unsold inventory. This will, however, meet the strident latent demand of transparency which was in the market for long.
The luxury and high-end markets are already facing the crunch because the major part of the payment was done in cash. Now the luxury home buyers have a wider market to choose from. Only the honest players will survive the race. In the long run, the Indian real estate sector will emerge as a tougher and sustainable sector. All the investments would now be legal and corporatised.
The other implications would be:
The move has some challenges in its initial stage, however, it will have a positive impact on Real Estate and bring in the stability soon. Black money has been given a farewell and is on the way to exit whereas a new dawn awaits a better India.
Director - Pramukh Group
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