Cash component in realty deals rising, reveals demonetisation anniversary eve survey

Nov 7, 2023

Synopsis
All cheque payments are "more an exception" as citizens surveyed revealed that only select builders selling flats and villas in large developments demand all cheque payments for the transaction. "... the norm in property transactions is use of cash and all cheque payments are more an exception," it said.

The cash component in property transactions seems to be rising, according to a survey released on the eve of the demonetisation's anniversary. The survey, which was conducted among 44,000 people from 363 districts by social media platform Localcircles, noted that 24 per cent of the respondents said they did not have to pay in cash while buying a property, as against 30 per cent just two years ago.

On November 8, 2016, Prime Minister Narendra Modi announced scrapping of Rs 500 and Rs 1,000 notes, representing over 86 per cent of the currency in circulation by value to reduce the reliance on the cash in the economy.

The survey said over three-fourths of the respondents who bought a house in the last seven years since demonetisation have paid a portion of the deal amount in cash.

Over 28 per cent of the respondents said 10-20 per cent of their property deal amount was paid in cash, 15 per cent said over half of the amount was paid in cash, while 18 per cent said 30-50 per cent was paid in cash.

All cheque payments are "more an exception" as citizens surveyed revealed that only select builders selling flats and villas in large developments demand all cheque payments for the transaction.

"... the norm in property transactions is use of cash and all cheque payments are more an exception," it said.

Meanwhile, even as digital transactions reach newer highs, the survey findings said that 82 per cent used cash for purchases in the last one year to pay for groceries, eating out and food delivery.

[The Economic Times]