Jharkhand: Property market witnesses a near two-third reduction in state

Insiders said that the property market has nose-dived.

Written by Prashant Pandey | Ranchi | Published: December 10, 2016 1:48 am
demonetisation, cash crunch, new currency, black money, Jharkhand, Jharkhand property market,, property registration, property sale decline, real estate, indian express news, india news, economy
As per official figures, the total number of deeds finalised in the month of July, including land transactions and sale/purchase of flats or apartments and commercial properties was 13,554.

The property market in Jharkhand, in terms of land and other property transactions, have been reduced to merely a third of what it was five months ago, thanks to demonetisation, official figures reveal.

Officials said that the trends were as expected. Insiders said that the property market has nose-dived.

As per official figures, the total number of deeds finalised in the month of July, including land transactions and sale/purchase of flats or apartments and commercial properties was 13,554. In the following months, there was a gradual decline, before a minor revival in the month of October. And then in November, this number came down to 4,404, which is nearly 32 per cent of the highest figures achieved in July.

In terms of total fee collected, the drop witnessed was over 76 per cent, from a total of around Rs 72 crore in July to only Rs 17.10 crore in November.

In Ranchi, which is the biggest property market at least in terms of residential and commercial properties, the total number of deeds finalised in its five sub-registrar offices Ranchi, Ranchi Rural, Ranchi Urban 2, Ranchi Urban 3 and Bundu stood at 2,623. In November, it came to merely 703.

“The trend since July is expected. And, obviously there is a decline in November following the announcement on November 8,” said IG (Registration) Bal Mukund Jha, while adding that he was out of station.

“We have had days where sub-registrar offices did not register a single deed in the entire days following demonetisation,” said another senior official from land department.

“The surge in July and August is because the government has adopted the strategy for revising the circle rates every year late in the month of August or September. So, those wanting to wait for a few months rush to buy it around July and August. Then, companies offer good deals to attract people after Dussehra and up to Diwali and Chhath. That is when the market picks up again. That did not happen this time,” said the official.

With the government trying to bring in changes in the Chotanagpur Tenancy Act and the Santhal Paragana Tenancy Act and the politics heating up due to this, the speculator/investor category had been playing safe. “People are waiting to see what will finally happen. And, now this (demonetisation)! It had to nose-dive. I had a buyer ready to sell accepting old notes in the first few days. But the buyer became smart enough seeking a huge reduction. The deal never happened,” said property dealer Dhirendra Mishra.

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