Registration of property in Hyderabad Old City has fallen by nearly sixty percent since the government's demonetization push was announced in the second week of November. Revenue department officials state that while there has been a drop in the registration of new property in Hyderabad, the number of gift deeds has risen since demonetization was announced.
Those employed with the concerned department state that prior to the November 9th decision by the central government to demonetize high denomination notes, district registrar office employees would register nearly ten to fifteen sale deed documents, today this number has fallen to nearly five or seven new registrations. Employees with the DRO (District Registrar Office) state that the number of gift deeds has risen considerably while the number of new registrations has fallen.
Some Homebuyers Were Just in Time
Homebuyers who had entered into an agreement to buy a residential property in Hyderabad just before demonetization had been announced went ahead and bought their new house, however the number of new homes purchased post demonetization has fallen significantly. As a matter of fact one registrar from Azampura has plainly stated that post demonetization he has not come across a single real estate sale deed that was not between relatives or friends.
A Sign of the Times
Since demonetization, residents of Hyderabad have visited the office of the registrar with regards to rental agreements, mortgages and will deeds, however the number of new sale deeds registered was barely seen. To put things in perspective, towards the end of last month, a stamp counter, which pre demonetization, always had a huge line of people wanting to register their property, recently did not have a single person eager to buy stamp paper.
Staffers at the registrar's office have stated that pre demonetization they would sell nearly 5000 to 7000 pages of stamp paper every day. This has now fallen to fewer than 2000 new pages of stamp paper sold every day. Staffers who deal in encumbrance certificates stated that while before November 9th' they would issue nearly 30 to 40 new encumbrance certificates everyday, today this number has fallen to below 15. Hence far fewer residential real estate in Hyderabad's old city is being bought and sold.
The Reason For Decline in Registrations
Those who earn their living by registering property documents claim that the prime reason for the registration of new properties is the lack of cash in the hands of those willing to buy and sell Luxury apartment in Hyderabad. According to such registrars, those who register Echallans prefer to pay using cash and since many banks still have huge lines of anxious people willing to stand in line for hours to withdraw cash, it demotivates many who are dealing in buying and selling property in Hyderabad since many such individuals are unwilling to stand in line for hours to withdraw cash.
Conclusion
While demonetization in its early phases had brought much of the commerce, particularly in real estate, in the country to a standstill, most experts agree wholeheartedly that its impact, in the long term, on real estate in India, will be largely positive. Demonetization has made possible other measures announced by Mr. Narendra Modi on December 31st which will make affordable housing in Hyderabad possible for Lower Income Group households in the city and across the country.
