An official survey released by India’s Central Information Commission (CIC) on Thursday has found that “fake” listings have spiked since the demonetisation of Rs 500 and Rs 1,000 notes, with the biggest surge in real estate listings in the city of Chennai.
According to the survey, which was conducted by the CIC, there were 1,863,622 listings in real-estate transactions in Chennai, with a total value of Rs. 10,857.84 crore in February 2018.
This is an increase of over 300% from January to February 2018, with 6,928,819 listings in transactions, a value of nearly Rs. 30,000 crore.
According the CID, the real-market price of properties in Chennai in January 2018 was Rs. 9,637.43 crore.
This rose to Rs. 11,087.80 crore in March 2018.
According To the CICO, the average real-net worth of property in Chennai is about Rs. 1.3 lakh crore, which is almost a third of the total Indian real estate valuation.
The survey, conducted by CICO for the state government, showed that “high-value” properties have seen a jump of more than 60% in value.
“In comparison, in the past few months, real estate transactions in the cities of Chennai and Kolkata have dropped by over 70% due to the demoneting of the notes.
In the last two months, there has been a dramatic drop in real transactions in these cities,” the CIP said in the statement.
According CICO chairman Pratap Kumar, the demonets are not only affecting the real estate sector, but also the real economy in the country.
“These are also the biggest impediments to the development of the real economies.
The real economy is the backbone of our economy,” Kumar told NDTV.
In a separate statement, the CIO, which oversees the state’s real-property sector, has also blamed the demoneteering measures on the “unavailability of financing”.
According to Kumar, a major factor behind the drop in property transactions is the “fraudulent” and “unethical” listing practices.
“These are the most significant impediments that are keeping us from reaching the realisation of our economic potential,” he said.
The CICO said the real value of property is a sensitive subject in India, as it is an indicator of a person’s financial worth.
The government has taken measures to reduce the real valuation of properties and have also taken steps to make it easier for property owners to avail of loans.