KOZHIKODE: The real estate sector in the high-ranges of Malabar would be one of the most affected financial sectors due to the demonetization drive of the NDA government, and it would be cleansed off black money, feel market players. The unaccounted money from hawala operators and gold smuggling rackets from the plains had been a catalytic factor in the real estate business of the region. More than 80 percent of the money in large deals was ‘black’ which would now stop, pointed out stakeholders.
The impact would be higher in elite property deals of more than Rs 50 lakh while it would be lesser in cases of small house plots. P.N. Ashokan, a real estate agent at Sulthan Bathery, told DC that it would take years for the industry to come out of the paralysis as unaccounted money constituted the lion’s share of major real estate deals in Wayanad. “In our inner circle terminology we call it ‘Kuzhal panam’ or ‘Koya money’ which augmented the business in the sector,” Mr Ashokan said.
Those who had unaccounted money pumped it into land deals resulting in an increase in the market value of land. "There are many deals in which plantations, resorts and prime properties were sold out far above the market value”, he added. For the real estate sector of Malabar which was on a revival phase after the Gadgil committee report, it was another shocker, it was pointed out.
The repeated agitations led by the church against the Gadgil recommendations scared off buyers which kept off investors. Vehicle and Real Estate Agents Association leader Chandran Manichira told DC that for the next few months, the real estate sector would be dead. Confederation of Real Estate Developers Association of India (Credai), Calicut chapter president M A Mehaboob told DC that the move was good for the economy as well as the sector in the long run.
