Published Paper Details:

On November 8, 2016, RBI (Reserve Bank of India) withdrew currency notes of Indian Rupees 500 and 1000, rendering them invalid legal tender from midnight November 9, 2016. The event resonates as second 9/11 as it brought down economic activities of many sectors in India, especially the cash sectors. Real Estate was the highest impacted sector. Real estate project developers, land traders and investors, all require high amount of working capital to stay, invested in the real estate markets. The move has been seen as a bold fiscal reform by many analysts, and succeeded partially to bring back the unaccounted money back into the banking systems However, demonetisation did set the equation straight with all bankers who had extended soft loans to real estate developers though 80:20 financing Schemes. Unaccounted NPAs (Non performing assets) of the banks went down considerably while Real estate developers who had delayed their real estate project projects were left further cash stripped. A close inquiry into the Ahmedabad city market shows a clearer picture on how the real estate activity will shape up in coming years as new developments are likely to intensify in the urban city core and put brakes on urban sprawl.