Property Demat Account Coming Soon!
Real estate is already gripped by recession. There is a possibility of a further huge decline in the prices of land and houses after the new law comes into force.
After 2014, there has been a decline of 20% to 35% in real estate. In the next one-two years, there may be a further decline of around 25%.
The central government is going to introduce a new rule asking people to open a real estate demat account. Similar to the demat account for the stock market, the center is going to implement the Real Estate Demat Account Scheme for the entry of land and houses.
Equity Demat Account holds all the shares in the stock. Suppose one Deepak Kumar has a demat account, then he has details about shares of all the company he holds. For example, Deepak has 140 shares of Reliance, 218 SBI and 250 shares of Sun Pharma, then all those details will be recorded in his demat account. If Deepak sells 40 shares of Reliance, then only 100 shares of that company will remain in his account.
No person can buy or sell shares without opening a demat account.
Similarly, all details of land, house, shop, immovable property etc. will be recorded in the Demat Account. Without demat account, the person, firm or company etc. cannot purchase/sell land/house/shop etc. For example, a person has a house in Jaipur, a residential plot in Noida, a shop in Poona, commercial plot in Gurgaon, then all of them will be reflected in the Demat Account. If data is not in the demat account of a plot or house etc. then that property will be treated as illegal. Transaction of such property will be invalid.
In the new law, there will also be a penalty for not using empty plots in the prescribed period. Apart from this, the government will penalize those people who have anonymous land. Under such circumstances, the possibility of a huge recession in real estate cannot be ruled out.
The Modi government is contemplating to implement this law at the earliest.