Post Demonetization Investments in Neemrana

Q: I am a prospective first time investor. I was encouraged by the consistent growth of real estate prospects in Neemrana region. However, I wanted to understand if there would be any negative impact of the Government's recent demonetization drive on the investment opportunities in Neemrana?

My budget is around 25-35 lakhs. Can you suggest few safe options which can yield decent rental returns as well as price appreciation in near future.

Thank you for your assistance.

Karan Joshi,

15th November 2016

Buying property in Neemrana

effect of demonetization in real estate

ban on currency

ban on high value currency

real estate after demonetization

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Replies (3)

I am also considering investing in Neemrana, where long term prospects seems to be excellent.
I have shortlisted Starlit Hotesl in Neermrana where investors can invest in studios and 1 bedroom units.
They are projecting Rs 2,500 per day as rent. This is a 4 star hotel.

If anyone has done research on this investment (Starlit hotels), please share here.

Gopi , Apartment Resident

18th December 2016

Comment

Gopi, Have you booked in starlit neemrana?

anubhav , Apartment Resident

19th March 2017

Yes, and specially the luxury segments. 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. The legal banking/financing channels have accounted for only a small part of all transactions in this space. The demonetization move is likely to result in luxury property prices dipping by as much as 25-30% as sellers struggle to offload properties to generate liquidity.

Dayananda, Mumbai

18th November 2016

Comment

Yes, i am totally agree with you Daya. Realty sector has the largest share of India’s black money. This move, to eradicate black money, would cause an upheaval in the real estate market. The primary sector or fresh inventory sale would be least affect by this move because most of its transactions are taken over by the finances provided by financial institutions and banks. The resale market is where the real hit would be. However, people would now look out for better real estate investment where there is more transparency in payment structure.

Sreeshayam, Chennai

18th November 2016

Hi,
Most of India’s business environment has been tremendously shaken up by the recent demonetization of the higher currency notes by the Modi government. The real estate sector will definitely be affected by the demonetization exercise, as it has traditionally seen a very high involvement of black money and cash transactions. However, almost all such incidences have been in the secondary sales market, where cash components have traditionally been a veritable ‘must’. In other words, the resale properties segment will take a big hit. However, short-term pain is inevitable when we look for any eventual long-term cure for the disease.
So, this is not the right time to buy property. Wait for 6 months property price will come down if there will be no buyer and huge inventory pile up. Developers will have to reduce the price if there will be no money in the markets.

Pranab Malakar, Delhi

18th November 2016

Comment

Don't forget that the liquidity squeeze is only temporary and with the changing times, it would only lead to clear and transparent transactions. Price of property will be seeing a downfall in the near future because of this demonetization.

Sreeshayam, Chennai

18th November 2016