Contrary to the popular perception that real estate dealings have hit a low after demonetisation, registration of properties has not suffered a steep fall. However, compared to October, December saw a considerable decline.
Comparative statistics from October to December in the district show that the number of registrations resulting in sale of properties progressively fell.
While 4,945 registrations were done in October, the number dropped to 3,415 in November and it was not a drastic fall going by the registration trends, according to DIG, Stamps and Registration, T. Saroja.
The district has two registration districts - Visakhapatnam and Anakapalle - comprising 19 sub-registrar offices.
The target for October and November was Rs.70.8 crore each and in October 81 per cent of target was achieved. However, in November it dropped to 63 per cent.
Real estate sources say immediately after demonetisation was announced there was a rush for getting properties registered.
In December the number of registrations as well as revenue realised further came down. Against a target of Rs. 80.24 core, the realisation was 54 per cent accounting for Rs.43 crore.
As usual, realty hubs like Anandapuram, Bheemunipatnam, and Dwarakanagar have accounted relatively for more registrations in December.
One of the reasons could be those who had money in their account and ready for registration went ahead and completed the process, said Ms. Saroja.
Banks accepting the demonetised notes for government fee payments till December 14 was also a reason for people going in for registrations as stamp duty and other charges for sale generally amount to about Rs.1 lakh.
Real estate sources say deals which were in the final stages for which a lion’s share of the payment had been made rushed for registration in the first few weeks after demonetisation.
Investments in land also happened with some realtors going in for aggressive marketing to exploit the situation, sources said.
The target for the 2016-17 is Rs. 944 crore. The proportionate target up to December was Rs. 604 crore of which 73 per cent i.e., Rs.443 crore was realised.
How the market reacts in the next three months will be not only interesting from government revenue point of view but the direction real estate dealings will take.
