Q.1161 Cash in residential

property sale after

demonetization

Question: I have a flat in Dwarka which is part of Delhi area that I have been trying to sell for quite some time. Now after almost two years I have a buyer who wants to buy the property but is haggling over the price and want to pay some cash also. Broker had told me price was three times what I am being offered now as they say price is down. Any idea of how property prices sales are in India now. Thanx for your advice will check after five or seven days the faq section Answer: The real estate market in India has slowed down considerably and has not recovered since the government banned the previous Rupees 500 and Rupees 1000 currency notes. Cash payment in real estate purchases were commonly used in India to avoid paying full registration charges of property or reduce capital gains from the sale of the property. Prices for residential property in India is currently down across India and the chances of a speedy recovery to higher prices is not very bright. Cash component involved in property sale/purchases may eventually creep back in India as old habits are not easy to get over. I have an article titled ‘Are Cash payments for real estate making a comeback in India’ that you can view for additional comment on this topic. To view article Click HERE