The Centre’s decision to pull out Rs 500 and Rs 1,000 notes from circulation has hit the real estate the worst.
The sector is known to be a safe haven for converting stock of blackmoney into white, especially in high-value transactions, took a beating with center’s decision.
High-value property deals and more specifically resale transactions involve large amounts of undisclosed cash transactions.
Majority of black money is involved in sale of lands than in construction and sudden ban of these notes is directly reflecting on it. Land deals are likely to be put on hold for some time.
According to expects , More than 40 to 50% of land deals are done with Black money and there was no registrations recorded today and this will continue for some more days.
The stocks like DLF crashing by 20% at 12 noon tells the real situation of real estate.