One sector that has been hit the hardest due to demonetisation is the real estate sector.
To get the sense of the full impact, CNBC-TV18's Rukmini Rao caught up with Anand Narayanan, President Sales, Marketing & CRM, Puravankara Projects.
Although the second half of November and December has been subdued in terms of demand, the first half of November was strong in new sales. The enquiries haven’t dropped and pent-up demand, too, is increasing, said Narayanan.
According to him, there is no question of prices falling in markets like Bengaluru, Chennai, Hyderabad, Pune etc because the construction cost is almost 70 percent of the selling price. However, in markets where the land cost is significantly higher and that is where there is headroom for prices to fall.
Construction costs are not falling because of demonetisation, he said.
However, going forward, once the market stabilisies and with clear trajectory on interest rates going down and pent-up demand at some point of time inflationary pressures will start applying on real estate and prices will start moving up.
Along with being optimistic about the fourth quarter, Narayanan said the worst of the past 4-5 quarters is behind them now.
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