Black Money Black money in primary housing market dropped by 75-80 pc post demonetisation: Anarock
Mumbai/IBNS: There has been a drop of 75-80 percent in cash transactions in primary residential market after demonetisation in late 2016, housing brokerage firm Anarock on Wednesday said.
"Black money (or cash transactions) in the housing market has reduced by at least 75-80 per cent since DeMo (demonetisation) in late 2016," Anarock said in a statement, according to ET.
Anarock said its conclusion is based on home loan disbursal data of the banks, review of registration documents, and inputs from its over 1,500 sales agents and focused group discussion with developers across the top seven cities.
It also said that the average size of home loan has increased.
However, the cash component continues to cash component continues to be present but "unlike earlier, people no longer buy homes primarily to get rid of black money - they now buy them because they want to own homes. Most of the end-users now majorly driving housing sales expect their property transactions to be transparent and above-board," said Ananrock Chairman Anuj Puri.
He said black money is being used in to buy homes in smaller towns and peri-urban areas.
However, the secondary or resale housing market along with luxury housing, historically drew the bulk of 'cash components', it said.
"Still, DeMo has changed the very fundamentals of why and how residential real estate is bought and sold in India. Today, housing sales happen because of actual demand, not as a means to launder black money," the consultant said.
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