Real estate consulting firm Anarock on Wednesday said the use of black money in Indian housing has reduced by at least 75-80 per cent post demonetisation.
Anuj Puri, Chairman - ANAROCK Group, said: "A notable impact of the triple whammy of DeMo, RERA, and GST was a significant deceleration in new property launches. ANAROCK data shows that in the pre-DeMo period between 2013 till Q3 2016, the top 7 cities saw approx. 16.15 lakh new units launched while the post-DeMo period (Q4 2016-Q3 2021) saw 9.04 lakh units launched in the top 7 cities – a drop of nearly 44% between the two periods."
"In the pre-DeMo period, new supply outstripped housing sales - whereas, in the post-DeMo period, housing sales overtook new supply in the top 7 cities", said Puri.
"In the pre-DeMo period (2013-Q3 2016), the top 7 cities saw approx. 16.15 lakh units launched while housing sales in this period stood at approx. 11.78 lakh units. After DeMo, between Q4 2016 and Q3 2021, these cities saw cumulative new launches of approx. 9.04 lakh units and housing sales clocked in at approx. 10.37 lakh units," he added.
Predictably, the secondary sales or resale housing market proved far more vulnerable to demonetisation than the primary market. This segment, along with luxury housing, historically drew the bulk of 'cash components'. While the resale housing sector continues to reel from the aftereffects of DeMo, affordable and mid-segment housing demand in primary sales (sales by developers) increased, according to Anarock.
