"Bengaluru is one of the least affected cities, the reason being the market here has predominantly been transparent and cash transactions are almost negligible," said Irfan Razack, Chairman of Confederation of Real Estate Developers' Association of India.
CREDAI said that the real estate in Bengaluru is largely driven by salaried class and all such transaction happens through banking channels. The association downplayed the role of cash in real estate in the city.
Razack was responding to a question on how they see demonetisation affecting real estate market and if price crash is expected. "The expectation that real estate prices will come down in Bengaluru market due to demonetisation is mere exaggeration. There is no real basis for this", he said.
CREDAI believes that the demonetisation move will empower smaller organised players and create a level playing field. They however, didn't discredit the 'temporary impact' of demonetisation on some markets.
CREDAI Vice Chairman, J C Sharma said that demonetisation was a good move and brushed off possibilities of any negative impact barring this quarter. "The move would eventually result in interest and lending rates coming down, making housing more affordable to all and expect the market to consolidate further" Sharma said.