This Presentation was made as a part of Class presentation. It elaborately portrays the impact of Demonetization on Construction Industry.

1. Subhendu Datta

2. 1. Introduction
2. Major Pros & Cons
3. Impact on Construction Sector
4. Impact on Real Estate
5. Conclusion
6. References

3. PM Declares Rs. 500 & Rs. 1000
High denomination currency
notes as Illegal Tender
Window period of 50 days given to
masses to deposit Illegal tender in Banks
New notes of Rs.500 and Rs. 2000
brought into circulation by RBI

4. BLACK MONEY & FAKE
CURRENCY

6.  Construction sector heavily dependent on cash
 Direct impact on Informal Sector
 Many small Builders wiped out from Market
IMPACT ON LABOUR &
MATERIAL SUPPLY
LOWER GROWTH
TRANSPARENCY IN
CONSTRUCTION SECTOR
No Salaries paid to labour.
Decrease in productivity Several Projects stopped
RERA, Benami Poperty Act
and demonetisation

7. IMPROVED INFRASTRUCTURE-
More money with Govt. to invest
in building infrastructure
LOWER EMI-
Decrease in Bank loan Interest
rates
FALL IN REAL ESTATE PRICES-
About 20% fall in Prices of commercial &
residential properties
ATTRACT INVESTORS-
Market transparency
improves investments
MORE BUYERS-
Improved access to banks &
loans
LOW LIQUIDITY-
Market heavily dependent on
Cash Transactions

8.  Demonetisation has brought transparency in Construction sector
 Surgical strike on Informal sector- Corrupt Builders out of market
 For small contractors, due to cash crunch there will be some disruptions in
medium term.
 Boost to construction in near future
 Decrease in Loan rates & increased access to Banks (Digital Banking) will
increase buyers in market
 Many unskilled laborers have lost jobs
 Interim Stagnation in projects seen
 Property Prices are coming down to as much as 25 – 30%

9. i. Anonymous, (2017). ‘Indian banknote demonetisation’, Internet, Wikipedia, https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetisation,
(accessed 5th February 2107)
ii. Ronak Thumar, (2016). ‘How demonetization is affecting construction industry in India?’, Internet, QUORA, https://www.quora.com/How-
demonetization-is-affecting-construction-industry-in-India, (accessed on 5th February 2017)
iii. Anil Rego and Rachna Rego(2016). ‘Demonitization of Rs 500 & 1000 notes from Indian Economy’, Internet, SLIDESHARE,
https://www.slideshare.net/RightHorizons2/demonitization-of-rs-500-1000-notes , (accessed on 5th February 2017)
iv. Deepak Dayal (2017). ‘Demonetization and real estate’, Internet, MEDIUM-WEB, https://medium.com/@dayallegal/demonetisation-and-real-
estate-a6301eb7552b#.ho7r54vrf, (accessed on 5th February 2017)
v. The Economic Times (2016). ‘Demonetisation and its side effects’, Internet,
INDIATIMES,http://economictimes.indiatimes.com/markets/stocks/news/demonetisation-and-its-side effects/articleshow/55678393.cms(accessed on
5th February 2017)
vi. S.Radhakrishnan, Dr.K.G.Selvan, Dr.S.Senthil Kumar (2017), Volume-4, Issue-1, "Impact of Demonetisation on Construction Industry", SSRG
International Journal of Economics, IJEMS, 2017
vii. Smita Nair, (2017). 'Demonitisation effect on realty sector: Lower prices, more transparent financing likely', Internet, The Indian Express,
http://indianexpress.com/article/business/business-others/demonetisation-effect-on-realty-sector-lower-prices-more-transparent-financing-likely-
4367199/ (Accessed on 7th February 2017)
viii. Ramesh Nair, (2016), ‘Impact of Demonetisation on residential Real estate’, Internet, JLL India Pvt. Ltd., http://jllapsites.com/real-estate-
compass/2016/11/impact-demonetization-residential-real-estate/ (accessed on 7th February 2017)