CREDAI as the apex organization in the real estate industry affirms that the primary market is funded by banks and financial institutions which are all regulated entities. As such, cash component is not an integral element of the primary market. Therefore, CREDAI denies adverse impact on the primary real estate market arising out of demonetization. In fact, the primary segment is expected to gain at the expense of the secondary segment of the market with its compulsive cash component.
In fact, in the aftermath of demonetization, banks are going to be flush with additional fudns upward of Rs. 10 lakh crore. Hence, a fall in interest rates up to 200 basis points is imminent of which SBI cutting its deposit rates by 1.75% is an early sign. Eventually, we see home loan rates coming down from the present level of 9.25% to less than 7% in less than one year from now. This would bring down the EMI for the ultimate consumers.