Mr. Vineet Goyal (Joint Managing Director, Kohinoor Group) shares his views on Demonetization

Dear Patron,

As the year 2016 comes to end, we are all set to welcome a new era. The beginning of 2017 should see India rising up to new dreams and expectations.

Ever since the evening of 8th November 2016, the day our Hon’ble Prime Minister announced the de-monetization move; there has been enough said and lot being discussed across television studios, of-fice corridors and every social gathering. A lot of speculation is happening over the future of the coun-try and also on the real estate sector.

Firstly, Demonetization is not a sign of recession but an historic opportunity to weed out the shadow economy that currently is predominant in the country. Unfortunately, certain sections are misrepresent-ing the meaning of demonetization and are promoting a situation equivalent to a recession thereby creating a negative sentiment and uncertainty that existed around 2008 with the real estate sector in India. Pune real estate industry has been witnessing housing demand fuelled by the end users who are dependent on funding from banking and financial institutions. The organized developers in Pune who operate with significant footprint have always enjoyed catering to this segment of home buyers as it keeps the transactions transparent.

The affordable housing and mid segment homes which contribute to about 85% of new home sales in Pune will see no impact in demand irrespective of the demonetization move as the customers who in-vest in such properties prefer dealing with operators who are accountable and transparent.

The demand for housing in affordable and mid segment sector is for about 8 crore homes while the country is only able to offer about 60 Lakh homes. The demand - supply is already stressed and a lot has to be done to address the gap. This also means that the prices will only appreciate in this sector. Post demonetization, the home loan interest rates are expected to be a lot cheaper thereby only com-plimenting the demand for housing. Also, our Prime Minister’s push for affordable housing with the Awaas Yojana scheme is going to benefit the sector.

With GST, RERA and now demonetization; higher transparency and trust will happen in the real estate industry. The illegal / unauthorized construction activity will cease to exist as the customers will shift to the organized players.

Pune is among the top 3 smart cities declared by the Government of India. Thereby, there is going to be a huge influx of funds to develop the infrastructure of the city. With good infrastructure, come op-portunities for jobs and thereafter fuelling demand for housing. With the demonetization move, there is going to additional funds available for boosting infrastructure and with the government focusing of skills development, there is only a positive trend that is foreseen for the demand for housing.

If you are considering investment in your dream home, I believe, this is indeed the right time for one to make the most of the growth that is anticipated along with savings from the reduced housing loan in-terest rates that is expected. I suggest that you look at investments with only organized developers who are registered with CREDAI so as to ensure you’re investing in a clean and the right kind of proper-ty which would reap benefits in the future.

Have a pleasant happy home buying experience and I wish you a happy and prosperous 2017!

Warm Regards
Vineet Goyal
Joint Managing Director
Kohinoor Group