The Reserve Bank of India’s decision to phase out the Rs 2,000 currency bill could potentially have a moderate impact on high-value property transactions, say experts.
However, it is unlikely that sales momentum will be significantly affected solely due to this change, as many developers are already inclined to avoid transactions involving substantial cash components.
Land transactions, especially in small towns and peripheral areas of large cities, may witness some uptick, as suggested by a marginal rise in enquiries for the same so far, the experts said.
“The liquidity scenario for real estate developers has improved a lot owing to a sharp recovery in sales momentum post-Covid-19 pandemic. Many of them are not showing any keenness towards deals involving large cash, especially after the last demonetization, fearing action from authorities,” said a property broker operating in central Mumbai.