After the hit on luxury brand sales, luxury property prices too are set to reveal the effects of demonetisation. According to real estate consultancy JLL India, prices of high end property are likely to dip by as much as 25% to 30% as sellers struggle to offload properties to generate liquidity. Since most of the transactions are carried out in cash, sales of luxury real estate would be considerably affected, primarily in the secondary sales market where cash was a necessary component. The move in fact is being considered as course-correction, since the removal of black money from the market would result in the elimination of investors who have been investing in projects with unaccounted-for money, and ultimately raising prices to book profits.
