 "KKR eyes big-ticket realty deals")
The ban on Rs 500 and Rs 1000 notes could lead to further reduction in interest rates on home loans and increase availability of funds for both developers and home buyers. It can also lead to a 30 percent reduction in land prices, said experts.
"I expect mortgage rate of 8 per cent in coming time,"said Sunil Rohokale, managimg director at ASK group, a Mumbai based find manager.
Rohokale said if cash component goes down, inflation would reduce and government would cut the rates.
"Banks Casa accounts will go up and their costs of fund will be down. They will pass on the benefit.," he said.
"I see a big impact on land and luxury housing markets which employ maxmimum amount of black money. I see up to 30% correction in land prices in next 3-6 months time," said Pankaj Kapoor, MD of property research firm Liasas Foras.
Shishir Baijal, chairman of Knight Frank said the move would create a level playing field amongst all stake holders in the sector.
"Institutional funding to developers which till present day came with a higher risk weightage is bound to see some softening with the increased transparency," Baijal said.
Structural changes
Anshuman Magazine, Chairman – India and South East Asia, CBRE said that Several steps taken by the Government in recent times—from the RERA Act and GST, to REIT—combined with this announcement, would further improve transparency and increase investor confidence in the real estate market in the long run.
