Construction magnate Niranjan Hiranandani today said the real estate sector had been hit badly by the government's sudden demonetisation move, but it would see a turnaround after March.
Commenting on reports of likely huge slide in prices of property in coming months due to the anti-black money drive of the Union Government, Hiranandani stated the move would ultimately prove beneficial for both customers and builders.
"Entire country is hit by the demonetisation move, and real estate sector is not an exception....Business will be down till March. Property prices are expected to go down as low as 20 per cent in this period till we see a turnaround in April next year," said Hiranandani.
Hiranandani, Managing Director of Hiranandani Group and CMD of Hiranandani Communities, was here to announce launch of 'Signature', a 16-storey tower constructed by the group within the International Financial Services Centre (IFSC) at the GIFT-City near Gandhinagar.
The tower will be officially inaugurated during the Vibrant Gujarat Global Summit in January.
Hiranandani praised Prime Minister Narendra Modi for taking the bold decision of demonetisation, and asserted that builders need to adopt the idea of cheques-only payment for better growth.
"In Mumbai, our group adopted this system of accepting 100 per cent amount in white, that is through cheques. Due to this, we saw that sales actually went up because actual buyers came forward to buy the houses. If other builders too adopt this idea, it will also help them in the longer run," he said.
"PM has sought 50-day time from people (for the things to normalise after demonetisation), but it may go on for one month more. Economy has got a cancer and our PM is trying to cure it with an operation. No one knows if this operation will cure it completely," Hiranandani said.
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