Insights on India’s Real Estate Market: Impact of Black Money and Investment Concerns

The Real Estate Market in India: A Black Money Conundrum

In a thought-provoking social media post, user Akshat Shrivastava raised concerns about the impact of black money on India’s real estate market. According to Shrivastava, the prevalence of black money in property transactions has made most properties in India unattractive for investment. He highlighted the fact that sellers often prefer cash transactions to avoid high capital gains taxes, while buyers opt for cash to circumvent hefty stamp duties.

Shrivastava’s post went viral as he pointed out the significant disparity between rental and purchase prices in India compared to other global markets. Using data from CNBC, he illustrated the stark contrast in the rent-to-buy spread between Indian cities like Mumbai and international counterparts like Kuala Lumpur and Hanoi. Shrivastava emphasized that businesses renting properties can benefit from offsetting expenses like Goods and Services Tax (GST) through white transactions.

Expressing concern about the impact of black money on the real estate market, Shrivastava suggested that if black money were eradicated from the system, the market would likely crash. In response to these insights, Shrivastava offered three pieces of advice to potential real estate investors. He recommended purchasing properties at sensible prices, investing in locations where the gap between selling and buying prices is minimal, and educating oneself about investing to make informed decisions.

As the debate on black money’s influence on India’s real estate market continues, Shrivastava’s insights have sparked a conversation about the need for transparency and accountability in property transactions. Stay tuned for more updates on this evolving story.