Chandigarh : “It is premature to accurately gauge the depth of the shakeup caused by demonetization, but its impact on the properties precisely real estate sector is immediately visible”, said Ramandeep Singh, Secretary, IOV (Institution of Valuers) during a seminar themed on “Effects of Demonetization on Properties” organised by IOV at Sector 43, Chandigarh on Sunday.
Singh added that due to involvement of huge black money in this sector, to own a property had gone beyond the reach of common man. However the declaration of zero tender value to old currency, the dream of common man to own a house seems possible.
“The residential real estate market valuation in the top 40 cities in India is expected to fall by almost 30 percent and tumble from a high of Rs 39,55,044 Crores by approximately Rs 802,874 Crores to Rs 31,52,170 Crores.
To encourage and attract the people to invest in Real Estate with white money, the rate of stamp duty, ideally Government should reduce in Punjab at the level of neighboring states. Apart from that, there are large numbers of properties mortgaged with banks and other financial institutions and decreasing market prices in properties made banks more vigilant. With all these developments, the role of valuers becomes very vital for stabilizing economy and ensuring revenue generations for Government” informed Er. Kapil Arora, General Secretary, Valuers Association.
Lt. Col Bakshi Chairman of IOV said that the Reserve Bank of India (RBI) had made it mandatory for all banks to value their assets and securities every three years, thereby increasing the work of valuers. He recalled the inception of the institution in 1968 which is registered under the Societies Act and now had 25000 members in 50 branches across the country.
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