NOIDA and Greater NOIDA property market is hit severely due to demonetisation as property registration has decreased by more than 50%. Buyers are unable to pay the registration and stamp duties, as they do not have cash.
Adding to the on-going adversity of demonetisation in the realty market, it has been reported that property registration in the NOIDA-Greater NOIDA belt has fallen by 50% compared to the last month’s data. This has resulted in a drastic decrease of revenue generation of the state government and the officials fear that they will not be able to meet the set revenue collection target for this financial year due to the prevailing cash crunch situation.
Registration of properties, especially that of builder flats, has fallen to half as compared to previous two months. This has been confirmed by Mr. Keshav Kumar, Additional District Magistrate (Finance), Gautam Budh Nagar, Uttar Pradesh. Hence, it is likely that the annual revenue generation target of Rs 2223.60 crore from the registration of properties through stamp duties and registration fee is going to be severely hit. So far, the registration department has collected Rs 1,286.20 crore revenue.
Mr Keshav Kumar said, “We usually collect Rs 110-150 crore in one month. In September and October, we collected Rs 114.32 crore and Rs 120.04 crore respectively. The revenue, however, has fallen to Rs 79.11 crore in November.”
According to experts, only those who have already purchased their houses before the announcement of demonetisation are paying the registration fee and making a shift. The process for resale of properties has taken a heavy troll. In addition, properties, which are finished but not registered, are also in a halt.
Report of people not willing to move to already handed over properties is also heard, as they have no cash to pay as registration fees and carry out infrastructure work, such as woodwork, furnishing etc. The district administration and revenue officials even had conducted inspection drives at such properties to ensure that the owners do not move to such houses before paying the registration. When people do not have cash in hand, there is no question of shifting in to a house. People are busy arranging cash to carry out their first priorities only.
NOIDA and Greater NOIDA registration department has even allowed collecting property registration fee in old currency notes up to Rs 20,000 until December 15. However, no remarkable change was seen as stamp duty and old currency notes were not accepted. The future of realty and property market will now thrive upon further government policies changes.