Real Estate brokers have taken a short break ever since the government demonetized the Rs 500 and Rs 1,000 notes on Tuesday.
“New bookings may not be affected much, but resale flats and land buying and selling which involves a certain component of an amount not shown in the deal and is handed over in cash are the problem areas. Since everything has to be shown in white, people will wait for a while,” a broker said. They also feel that people will go slow in land sale as it was usually seen that the market price of land is double the ready reckoner rate and most of the consideration is given in “black money”.
A broker from Bavdhan said land rates are about Rs 2,000-Rs 2,500 per sq ft but the market price is Rs 5,000 per sq ft. “There is a straight component of black money here. However, we have to wait,” he said. With a general dip in the realty market with few investors, builders will henceforth take the entire amount in white. Another broker said the buyer will have the upper hand and the seller cannot demand any component in black or evade paying taxes.
“People often undervalue the property so they pay less registration or pay a certain amount in cash. All this will be stopped,” the broker said.
Meanwhile, a citizen under condition of anonymity said he had given about Rs 5 lakh to the owner of a resale property in black two days ago. Now, the owner had returned the money and called off the deal.
Credits ET Realty