Mumbai:The effect of the ₹ 2000 note being out of circulation is now visible on the real estate market as well. After the 2000 note is out of circulation, the number of people buying property in cash has also increased. Property dealers say that due to this decision of the government, there has been an increase of five to seven percent in the number of property buyers in the last few days. But people who are coming for booking of property are using ₹ 2000 notes more. However, property dealers believe that buying property in cash is risky for them.
Cash is being used for purchases
Property dealers say that after demonetisation in 2016, the rules have been tightened. This is the reason why dealing in cash has reduced by almost 90 percent as compared to earlier. Now after the announcement of withdrawal of Rs 2000 note, the demand of property dealers to buy property in cash is increasing.
7 percent increase in demand
It is noteworthy that Arvind Goyal, who is working as a property dealer in North Mumbai, says that in the last three days the demand for buying property in cash has increased by about 5-7%. To curb black money, there is a separate income tax rule on the use of cash in the dealing of immovable properties. Anil Kumar Senapati, who has been working in the property market for the last 23 years, also says that the demand has increased, but dealing in cash is now risky. Nobody wants to take the risk.
Bank transaction is the only option
On the other hand, Arvind Nandan, managing director of Savills India, an international property consultant, says that cash transactions in real estate have reduced by several percent. He said that we do not have written data but after RERA, demonetisation, cash transactions have reduced a lot. It is not that the dealing in cash has stopped completely, but it has definitely reduced a lot. People i.e. seller and buyer have now understood that only bank transaction is correct.
Increased use of cash due to this reason
Real estate, which is considered to be the biggest source of cash, took such a hit in the 2016 demonetisation that developers no longer believe in holding cash. Experts say that before demonetisation, where about 40-44% of the dealings were done in cash, it has come down to about 10% now. Under Section 269SS of the Income Tax Act, if a person is taking an amount of Rs 20,000 or more in cash while selling a property, then that entire amount will have to be paid as compensation. The central government had done this with the intention of curbing black money.
People asked for ID cards to exchange Rs 2000 notes in Delhi and Mumbai
