Due to unavailability of hard cash among people due to demonetisation, registry of property in Ranchi have largely been affected, putting down the figures to less than 20 a day, which earlier happened to be more than 100. As per officials in registration department, only 1,045 registration were done up November 18 across the State since demonetisation was announced on November 8.
“Since, there is no hard cash available in the market and banks where registry fee is deposited are not accepting old currency of Rs 500 and Rs 1000, registry offices are also not accepting old notes, directly affecting the number of registry in the state,” said a senior official in Registration department.
When asked, why people were not using E stamping for registration purposes, the official said that people were not that aware about it. “Moreover, the E stamping system remains mostly non functional,” said he.
Property dealers were of the view that buyers are delaying registrations ever since the Centre announced demonetization of high denomination currency notes.
“Those who were planning to purchase flat and land have postponed it as of now, as there is so much confusion rampant in the market,” said a property dealer requesting anonymity. Moreover, black money is also involved in most of the land dealings, which is also one of the reasons for such a low turnout, he added.
“Those who are genuine purchasers of property of their hard earned money; they are also waiting for property rates to come down,” said the property dealer. This crisis is likely to continue for at next one year, he said.
Realtors also suspected that property markets would see at least 30 per cent correction in prices. “Even builders who claimed that they accept payments thorough cheque only, will also be forced to trim down prices given the market conditions around them,” he said.
land prices will also move downward as these deals used to see at least 30 per cent cash component, said another realtor requesting anonymity.
“Construction work after demonetization has completely been stopped as no one is ready to receive payment through check as it is difficult to withdraw money from banks these days due to heavy crowd and there is no question of sale and purchase of property in such conditions. Not a single person has visited any of my sites post November 8,” he said.
Given the existing stock across the property market, the impact will be gigantic where payment of cash is compulsory and the chief form of profit taking for developers as well as investors is the unaccounted money.
It is likely to see a major collapse making an already difficult situation even more challenging, he said.
