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Real estate, gold market in Kerala to see sharp reaction

Published: 09th November 2016 01:29 AM  |   Last Updated: 09th November 2016 03:24 AM   |  A+A-

Real

Motorists throng a petrol bunk near Town Hall in Kochi as the frenzy over the decision to scrap Rs 500 and Rs 1000 left people scurrying to dispose of these denominations | Melton Antony

By Express News Service

KOCHI: The surprise decision to scrap D1000 and D500 notes is likely to trigger a sharp reaction in the real estate and gold market sectors. It is a common belief that black money is channeled either through real estate or by buying gold. Giving a thumbs up to PM Modi’s decision, Asset Homes managing director V Sunil Kumar said it the land prices may drop, eventually benefiting the real estate sector. “The unrealistic price hike in land happened as a result of the massive black money in the system. With the latest move, the flow of unaccounted money to land will be halted.

The price is likely to come down to realistic levels, hence a boon to the sector. The fall in land price will reduce the flat/villa prices as well,” he said. CREDAI Kochi president J Paul Raj said the move would help the sector in the long run though there would be hiccups in the near future. “With the recent announcement of the government to quote PAN number for gold purchase of above Rs two lakh, gold purchasing using black money will be curbed. The scraping of high denomination notes may see a drop in sales and even a correction in prices, but the economy will be benefited in the long run,” said Ramesh S Pai, partner of A Geeri Pai jewellery.



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