As we look back on the impact that demonetisation has had on Telangana’s economy, perhaps one of the worst hit sectors has been the real estate. Nearly 6,000 projects around Hyderabad got stalled and the state's income was seriously impacted. Selling and buying of plots in and around Hyderabad as also that of houses became far more complicated because a lot of it was done in cash and cash suddenly dried up completely.
On the sunnier side, Telangana got to the No.1 position in digital transactions. It notched up INR 34 crores in digital transactions. But, the income from registrations fell sharply in the year 2016-17. this was true of investments as well. In 2015 and 16,the investments in Hyderabad were around 300 crores and if one were to look at the period from June 2016 to 2017 June, this dropped to 195 crores, a steep decline of 35%.
While real estate was the worst hit, there was a lot of collateral damage on the ancillary industries related to the sector as well. Employees connected with the real estate sector also got laid off and construction labourers were among the worst hit. These are some of the ramifications of demonetisation in Telangana.