To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016.
– Prime Minister Narendra Modi
What does the India Inc has to say about PM Modi’s demonetisation move?
Anshul Jain Managing Director-India Cushman & Wakefield
The impact is likely to be seen in secondary markets for all asset classes thereby making real estate more illiquid for a period of time till the market adjusts to a new normal. The primary market which is largely driven by large developers is unlikely to get affected that much as most large and reputed developers already do not deal with cash transactions.
Getamber Anand, President, CREDAI National
With this step of demonetisation, banks are again going to be flushed with liquidity of around ` 15 lakh crores and will be compelled to lend aggressively. To do that they will have to lower interest rates. Demonetising currency has also removed surplus liquidity from the market which will result in reducing inflation.
Tulsi Tanti,Chairman and Managing Director, Suzlon Group
It is a much needed and opportune move as a follow-up to the one time compliance window that recently shut. The country’s growth agenda will receive a major boost and the impact of this decision, while creating discomfort in the short term, but will have far reaching benefits in the long term. It will certainly enable a shift of all transactions to a more transparent and compliance driven mechanism as a whole.
Brotin Banerjee, MD and CEO , Tata Housing Development Co Ltd
Demonetisation, coupled with the implementation of RERA will make the buying process for consumers more transparent.
Vipin Sondhi, MD & CEO, JCB India
A very bold and ambitious step by the government to curb black money. This will help the country move towards more digital transactions and become a cashless economy. After GST, this is another major effort by the government towards its vision of transforming India into a global investment destination.
Pramod Chaudhari, Executive Chairman, Praj Industries
This (demonetisation) will enhance India’s global standing and help to improve country ranking in ‘Ease of Doing Business’ while attracting investments. It will help to control transactions of unaccounted money in the country.
Ar Ricky Doshi, Founder & CEO, ARD Studio
The initiative will aid in bringing a transparency in the real estate industry, thus we will be seeing a more controlled and regulated growth. The consumers will be highly benefitted as there will be an end to corruption within the government departments as well.
Boman R. Irani, CMD, Rustomjee
With this move we await a softening of the home loan rates as there will be excess liquidity which can be a benefit to the home buyer. We foresee enhanced confidence of global investors looking to invest in the real estate sector.
Director, Assetz Property Group
This move would help in curbing the flow of black money into the economy, bringing a lot more transparency in the industry (real estate).
Abhishek Lodha Managing Director, Lodha Group
Over the next 12 months, lot of money will flow into financial instruments and hard assets like real estate, since people will be encouraged to disclose their earnings willingly. This is likely to improve liquidity and lowering of interest rates, all of which will help boost the economic growth.