Yes, demonetization has ushered a short term downfall on real estate sector. However, this has turned out to be a boon for the rental realty segment. Pre-demonetization era saw, black money being extensively used in transactions, especially in the secondary market.
Property managers or landlords have plenty of costs like building maintenance, repairs, updates, and interior and exterior paints to consider before renting out a property. There are wide varieties of products and techniques, available in the market that promises to reduce energy costs of the building.
Although, demonetization of higher currency notes caused a temporary slowdown on the realty market, this government step doesn’t seem to have any major repercussion on the rental market. The commercial/office rental market has continued to grow in the year ending 2016 and is expected to continue this streak in 2017 as well.
Many said that post demonetization scene in Chennai would be heartening for property buyers. Is it actually happening? Are prices falling, so that fence sitters can make best of the opportunity? Yes, the supply and demand scene says so. Prices of real estate, in some segments, are seeing a drop in price making it ideal for first time property buyers to go for their dream home before it’s too late.
Property owners need to keep their tenants happy for the most obvious reason: RENT – longer the tenants stay, more the revenue for the owners. One of the best ways to achieve higher revenue from rentals is by hiring good property management services .
Demonetization and Home Buying
The real-estate market of India so far has largely been financed by black money. With the recent demonetization of 500 and 1000 rupee notes, experts see recalibration in the way property development has been funded. However, some tend to have guarded opinions on the impact of demonetization on stemming black money into realty market.
Tougher are the processes of move-into, living-in and move-out off a rental property when compared with the process of finding one. Even a highly critical tenant can over look some of key things before moving into the property for he was able to find a good rental place with ease.
According to a recent report by GRI and Cushman & Wakefield, India is expected to see a surge in demand for urban housing for the period of 2016 to 2020. It has been estimated that 4.2 million units would be required to cater to the rising demand for housing in the top 8 cities in this duration.