Post Demonetization, Mixed Signals Concerning Property in Gurgaon

Sale of property in Gurgaon continues to be hampered by the demonetization of high value currency notes that took place more than three months ago. The largest property markets in India, namely Gurgaon, Noida, New Delhi and the Mumbai Metropolitan Region have yet to recover to normalcy three months post demonetization.

The MMR and the NCR are two of the most expensive real estate markets in the country and thus, unsurprisingly, these markets have remained the most subdued since the government took action to crack down on black money in the country.

Not Helped by Union Budget

Even as the government cracked down on black money using demonetization; investors and those who owned property in Gurgaon and the MMR had hoped for a stellar Union Budget that would cushion the blow dealt to wealthy owners of property in two of countries wealthiest and largest property markets.

There was however disappointment in many wealthy segments of the populace as the Union Budget of 2017 catered more to providing affordable housing in Gurgaon and in other cities to lower income groups rather than providing tax breaks and incentives to the wealthy.

Not All It Seems May Be Lost

Till today there are conflicting reports emerging from those who are actively working in the countries largest real estate markets. Statements to the effect that enquiries for properties have started have been heard, however many builders and developers in Gurgaon insist that business has ground to a halt. It has, however, also been elicited that buyers eager to own a home financed by lenders are making offers to buy properties in Gurgaon.

Expectations Driving Market Sentiment

Experts and real estate gurus are of the opinion that buyers are expecting a huge price correction among properties in Gurgaon and in the MMR. Such sentiment is likely the cause of the buying freeze in two of largest property markets in the country. Buyers feel certain that if they wait a few months longer then prices will have to fall; conversely they feel that if they buy today and prices fall a few months down the road they would in effect incur a loss on any property in Gurgaon and the MMR they purchase today.