in the trench

https://biginvestorblog.com/2016/11/23/demonetization-triggers-piramal-enterprises-first-concall-in-years/

INDUSTRY VIEW
  • The sentiment is subdued.
  • There is Rapid Consolidation happening. Demonitization brought out the true impact of RERA.
  • Customers are beginning to chose
    • Safety over discount
    • Brand over contact
  • Tier 1 may be affected broadly by 25%, but not more than 15% in good micro Markets.
  • Tier 2 will experience Mayhem.
  • LUXURY will get affected – Blanket view.
  • Prices will correct. However at every 10-15% drop in prices, demand will rise.
  • RERA + Demonitisation is an ORGANISED PLAYERS WET DREAM.
  • New Approvals will be delayed due to confusion in greasing.
  • Govt is however shifting approvals to an online process anyway. Great for people following the law, bad for those who aren’t.
  • Long term 12 months + this is a great trigger for real estate. LOWER INTEREST RATES/ TAX SOPS ON AFFORDABLE/ PRICE CUTS.
  • Shitty builders were destined to die, now they will just die faster.

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