Real estate in Chennai is an end-user driven market and so many people are asking the question what affect will the demonetization will have on the sector? Most of the transactions that take place in the real estate Chennai happen in the resale market. It is a well-established fact that in resale market the cash component is much more as compared to the primary market. If people will buy Kandigai flats for sale directly through the builders, most of the payment will has to be made through legal routes. However, if Kandigai flats for sale are brought in resale market more than 50% payment was done in cash. Although the selling price of Kandigai flats for sale is the same in primary and secondary market but the registered value on papers and legal documents is much lesser in case of resale market as people want to save on the tax component, which can sometime be around 20% of the selling price of the property.
It is expected that after the demonetization drive most of the people will mention the actual buying price on legal papers. Sellers in resale market will also prefer to take 100% payment through legal routes. Real estate in Chennai will see greater transparency. The state authorities will be able to increase their tax revenues through real estate Chennai, as people will not register their property at undervalued price. The price gap of in primary and secondary market is likely to be bridged. It is high time that such loopholes are plugged so that there is greater accountability in the real estate Chennai.
In the long run the demand or supply in real estate in Chennai will not be much affected by the demonetization move but deals will definitely be more transparent which will lead to market stability.
It is expected that after the demonetization drive most of the people will mention the actual buying price on legal papers. Sellers in resale market will also prefer to take 100% payment through legal routes. Real estate in Chennai will see greater transparency. The state authorities will be able to increase their tax revenues through real estate Chennai, as people will not register their property at undervalued price. The price gap of in primary and secondary market is likely to be bridged. It is high time that such loopholes are plugged so that there is greater accountability in the real estate Chennai.
In the long run the demand or supply in real estate in Chennai will not be much affected by the demonetization move but deals will definitely be more transparent which will lead to market stability.
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