Demonetization move is likely to result in luxury property prices

The real estate sector has definitely affected by the demonetization move, as it has traditionally seen a very high involvement of black money and cash transactions, but now it has overcome the impact of this demonetization. However, almost all such incidences have been in the secondary sales market, where cash components have traditionally been a veritable ‘must’. Therefore, the real estate sector and resale properties segment will take a big hit in the coming days. The luxury and high-end segments of residential real estate will also see a major impact from this exercise, since it is another area which has seen a lot of payments done in cash. This means that luxury homebuyers will suddenly have a much wider bandwidth of options to choose from.