‘How much in cash?’: Homebuyer exposes 'black' deals amid skyrocketing prices in India’s real estate market

The soaring property prices in India have made homeownership an increasingly daunting task. Rapid urbanization and a surge in demand have driven prices up, while additional transaction costs, high stamp duties, and complex regulations add to the burden. For many first-time buyers, securing a home loan is another challenge, with strict lending criteria and high interest rates making affordability a major concern.  

Beyond financial hurdles, many buyers face an even murkier problem — black money in real estate transactions. A Reddit user shared their experience while searching for property in Gurgaon, revealing how brokers openly ask for "white-black options," where a significant portion of the property price is paid in unaccounted cash.  

“Been searching for property in Gurgaon. Heavily bombarded by calls from brokers… A broker calls and blatantly asks for white-black option — how much can I pay in cash, and the rest in white. This accounts for over 60% of the property value,” the user wrote. They also raised concerns about poor construction quality, stating, “Now, I am staying in a new Gurgaon property where possessions have just begun, but the plaster is coming off, seepage is there, and the commode is shaky.”  

The post resonated with many others who shared similar experiences. One user recounted their struggle in Hyderabad, where a reseller demanded 35% of the property value in black money. “Even a builder asked how much black money I can give for an under-construction property. Obviously, the government knows this, but since politicians are involved, nothing changes.”  

Frustration over the issue was widespread. Another user commented, “Same thing is happening in Bangalore and all over India. If income tax was doing its job, houses would be affordable. But they never go after the real estate-political nexus, which has the highest tax liabilities. Sucks to be working 12 hours a day, paying 40% taxes, with zero job security.”  

Some users advised patience and caution. “Don’t get disheartened. There are plenty of full cheque deals available. Under-construction properties are risky as they haven’t stood the test of time,” one suggested.  

Another pointed out a shift in focus within the real estate industry. “House is the primary requirement, and amenities are secondary. But now, builders highlight amenities while ignoring construction quality. They just say ‘We are using Mivan,’ but even that isn’t immune to seepage.”