Indian Journal of Economics and Development

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Demonetisation:A Boon for the Real Estate Sector


Affiliations
1 Symbiosis Law School Noida, Symbiosis International University, Pune-412115, India
 

Objectives: To provide a bird eye’s view of the entire real estate market, as the public at large is aware about the significant challenges that the Indian real estate has been facing in the past few years in terms of sales and growth. These include the policies of demonetization, GST, BENAMI Transaction Act and Real Estate Regulation Act.

Methods/Statistical analysis: Secondary Sources that include references to various databases and reports obtained from various governmental websites.

Findings: There has been a significant amount of findings associated with the research conducted. The context of this research has been in lieu of demonetization with the supplements of the supporting legislations- Goods and Service Tax, Prohibition of BENAMI property transactions Act, Real estate regulatory authority act. Each of these acts when analysed have indicated as being of significant improvement in the state of economic affairs. As has been also highlighted there has been some difficulty in adjustment to the move of demonetization in the beginning for the people yet it appears that in the long run it is a feasible option and of much relevance and one of the biggest steps for the growth of the Indian economy (i.e. approximately USD 14 billion to a USD 102 billion).

Application/Improvements: In light of the cleansing the real estate sector, demonetisation has been aimed at removing black money in the sector. However, the highlight of its success can mainly be identified through the help of the various legislations that already exist and in furtherance be a stepping stone to providing a holistic approach to the sector of real estate. The improvement has been to consider all the major legislations and henceforth reach a fair consensus through the help of economic analysis keeping in mind the effects of all major legislations (Goods and service tax, Prohibition of BENAMI property transactions act, Real estate regulatory authority act) on real estate in order to identify the real impact on the sector of real estate from a policy as demonetization to specific acts that govern the real estate sector.


Keywords

Demonetisation, Real Estate Sector, Black Money, Primary Sales, Resale, Land Transaction.
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  • Siddaramiah. Real estate is the second largest employer. Business Standards. 2016; 1-2.

  • Indian Brand Equity Foundation. https://www.ibef.org/industry/real-estate-india.aspx. Date accessed: 09/2017.

  • Impact of Demonetisation on Real Estate in India: https://www.indiabullshomeloans.com/blog/the-impact-of-demonetization-on-real-estate. Date accessed: 22/12/2016.

  • Positive Impact of demonetisation on real estate: https://www.slideshare.net/sanjanamurya/positive-impact-of-demonetization-on-real-estate. Date accessed: 10/01/2017.

  • 7-things-about-demonetization-real-estate-no-one-told-you-about:https://www.slideshare.net/ indiaproperty/7-things-about-demonetization-real-estate-no-one-told-you-about. 18/11/2016.

  • Property investments set to rise as real estate law comes into force: https://www.makaan.com/iq/news-views/rera-is-not-just-good-for-buyers-its-great-for-developers-too-heres-why. Date accessed: 01/05/2017.

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  • How GST will impact residential real estate? http://www.financialexpress.com/money/how-gst-will-impact-residential-real-estate/738929/. Date accessed: 28/06/2017.

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  • Demonetisation:A Boon for the Real Estate Sector

Abstract Views: 248  |  PDF Views: 158

Authors

Sanah Badhwar
Symbiosis Law School Noida, Symbiosis International University, Pune-412115, India

Abstract


Objectives: To provide a bird eye’s view of the entire real estate market, as the public at large is aware about the significant challenges that the Indian real estate has been facing in the past few years in terms of sales and growth. These include the policies of demonetization, GST, BENAMI Transaction Act and Real Estate Regulation Act.

Methods/Statistical analysis: Secondary Sources that include references to various databases and reports obtained from various governmental websites.

Findings: There has been a significant amount of findings associated with the research conducted. The context of this research has been in lieu of demonetization with the supplements of the supporting legislations- Goods and Service Tax, Prohibition of BENAMI property transactions Act, Real estate regulatory authority act. Each of these acts when analysed have indicated as being of significant improvement in the state of economic affairs. As has been also highlighted there has been some difficulty in adjustment to the move of demonetization in the beginning for the people yet it appears that in the long run it is a feasible option and of much relevance and one of the biggest steps for the growth of the Indian economy (i.e. approximately USD 14 billion to a USD 102 billion).

Application/Improvements: In light of the cleansing the real estate sector, demonetisation has been aimed at removing black money in the sector. However, the highlight of its success can mainly be identified through the help of the various legislations that already exist and in furtherance be a stepping stone to providing a holistic approach to the sector of real estate. The improvement has been to consider all the major legislations and henceforth reach a fair consensus through the help of economic analysis keeping in mind the effects of all major legislations (Goods and service tax, Prohibition of BENAMI property transactions act, Real estate regulatory authority act) on real estate in order to identify the real impact on the sector of real estate from a policy as demonetization to specific acts that govern the real estate sector.


Keywords


Demonetisation, Real Estate Sector, Black Money, Primary Sales, Resale, Land Transaction.

References