To better understand the effect of demonetisation it is necessary to segregate the real estate market into primary and secondary. Primary market will constitute of the new apartments and flats that are being constructed and sold by prominent real estate developers. Secondary market involves the resale of existing residential flats, land and commercial properties. Secondary markets are likely to face some initial hiccups, should the demonetisation scheme be successful. Unlike their primary counterparts, secondary market transactions usually have 30-40% cash component especially more so in non-tier 1 areas.
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