Black Money Has Fallen By 80% In Housing Deals Since Monetisation, Anarock Says

During the pre-demonetisation period, new supply outpaced housing sales, but after demonetisation, housing sales outpaced new supply in the top 7 cities

Black money use in Indian housing has decreased by at least 75-80 percent since November 2016 when the Indian government demonetised the bulk of the country’s currency, real estate consulting firm Anarock said on Wednesday.
One of the major drivers of this is that branded, listed players – who now attract the majority of housing demand to their projects – follow the law and avoid unaccounted monies in their transactions, according to Anarock Chairman Anuj Puri.

Despite today’s smoother ride for the housing sector due to demonetisation, it had a major impact on the fundamentals of why and how residential real estate is bought and sold in India. Today, housing sales happen because of actual demand, not to launder money,” said Puri.

Prior to demonetisation, new supply outstripped housing sales, whereas housing sales surpassed new supply in the top 7 cities, according to Anarock.

From 2013 to Q3CY2016, top 7 cities saw a launch of nearly 1.615 million units, while housing sales in this period stood at approx. 1.178 million units. After demonetisation, between Q42016 and Q32021, these cities saw cumulative new launches of approx. 904,000 units and housing sales clocked in at approx. 1.037 million units, a study by Anarock revealed.