IMPACT OF THE 2016 DEMONETISATION ON THE REAL ESTATE SECTOR IN INDIA

The sudden note-ban (demonetization of Rs. 500 and Rs. 1000 notes) on 8th November 2016 in India left the country in a state of shock and uncertainty. This paper highlights the impact this demonetization had on Indias real estate sector, in the short run as well as the long run, and whether it was of overall benefit to the sector in the long run. It is a descriptive study which uses data collected from secondary sources and websites to analyze the main reasons the real estate sector was so largely impacted in the short run, key government policies and acts imposed during that time which impacted the real estate industry, the condition of the real estate sector pre and post demonetisation, the benefits and challenges to economic agents (buyers and sellers, primarily), and the long run consequence of this sudden move. The state of the real estate sector 5 years into demonetisation has also been considered, which has helped reach a conclusion as to whether or not this demonetisation was of an overall benefit to the real estate sector.