Real estate traders are experiencing a silent boom as citizens are reportedly investing black money in property, instead of heading to the banks to get them exchanged as per the government’s new policy. It is learnt that more than Rs100 crores have changed hands in the city and adjoining areas in the last couple of days, since Prime Minister Narendra Modi rolled out his demonetization policy.
Sources claimed that a section of real estate dealers and agents have pounced on the opportunity to make profits as citizens are queuing up at banks to exchange old currency notes. They are opening their doors to customers who would like to make payments in black money. The practice of real estate dealers to accept payments in black is nothing new, but it has found fresh takers among citizens in the backdrop of the demonetization. If sources are to be believed, several real estate dealers have turned the situation in their favour by selling properties which were earlier not finding any takers.
An insider even claimed that real estate dealers, who have substantial cash credit limits at banks, are offering the properties against black money while keeping the option of registering the deal next year. Ready reckoner rates are expected to be revised next year, leading to expectations of a lower price. Even if the rates of the property do not change, the registration of the property would be done next year as per the deal fixed now.
It’s learnt that real estate dealers can use the black money to return loans or pay off their debts while showing on record various expenses like labour payments, purchase of construction material, various procurements and so on. Sources claimed that several real estate dealers have already ‘hired’ services of trusted employees to open bank accounts, which will then be used to deposit black money.
“The real estate dealers were earlier making around 30% profits and also struggling to sell properties in the market hit by a slump. Since they have started accepting black money, real estate dealers are making a killing,” said a source.