Indian real estate impacted by monetary change

[Nicholas Wallwork]

In a surprise move the Indian government this week announced that the country’s two highest denominated banknotes will cease to be legal tender. Bearers of the Rs1000 and Rs500 notes have been instructed to visit their nearest banks to deposit or convert them. This may seem like a minimal change to the Indian banking system

Click to Read The Full Story and Add your Own Comments to Continue reading...

 

[lookinginvest]

It is difficult to believe that such a simple change in the Indian bank note system could have a major impact upon areas such as the real estate market. However, when you think about it, if there is undeclared and illegal money entering the real estate market as "cash buys" this would put buyers in a difficult position. Time will tell but even if this is the right thing to do, surely the Indian government should have given more notice?

 

[nmb]

This relatively subtle but highly relevant change by the Indian authorities will make the Indian real estate market more attractive to investors in the longer term. Do not underestimate this simple change!