Recent studies show that in the first quarter of 2017, prices of under construction properties in Delhi and nearby cities have seen a sharp fall. However, contrary to the popular belief, it is not due to demonetization in November. This fall has been a correction in price of properties. In the last quarter of 2016, there was an upward movement in pruces of residential properties.
The maximum increase was observed in the following cities, Jaipur, Chennai, Lucknow, Guwahati, Howrah, Hyderabad, Bidhannagar.
National Housing Bank has also collected data on land prices which shows that a correction has occured in the prices of land which reflects the declining trend in transactions of unaccounted money. Of the 47 cities that have been studied, market prices of under construction properties in 14 cities have shown a decline over the previous quarter.
The housing sector grew at a rate of 18 to 19% which accounted for 86% of cash in circulation.