The steep increase in guideline rates of the property in the year 2013 had an adverse effect on the realty sector of Indore which hardly saw any growth during this period.
“The guideline rates for the year 2013-14 and faulty government policies had a dampening effect on the realty sector in Indore. The buyers as well as sellers have suffered as the state has highest stamp duty (7.25%) as compared to other states where it is less than 5%,” said advocate Pramod Dwivedi, who is a consultant for registry related issues. “The sector is expected to end up with a loss of Rs 5,000 crore this financial year,” he added.
The sluggishness in the sector is also reflected in the revenue collection by district registrar office till the beginning of final quarter of the financial year. The revenue collection has not even touched halfway mark of the target of Rs 1134 crore set by the government for 2013-14.
“Realty sector is facing recession. It has been stagnant for past six months. The taxes and guideline rates have caused a damage to the market which can been seen even in the revenue collected by registrar office till date,” said honorary secretary of CREDAI Sandeep Srivastava.
Assembly election also contributed to the slowdown in realty sector, he said, adding the market was expected to revive now.
Srivastava said the revenue collection of registrar office in 2012-13 was above Rs 900 crore and that was due to central taxation guidelines according to which guideline rate was considered as transaction rate. A large number of people including colonisers had got their properties registered by March 31,2013.
“This year, there is nothing to attract people. And adding to it, the high guidelines rates have discouraged them further. I doubt if the department will even reach the halfway mark in its revenue collection, “ added Srivastava.
He said CREDAI had raised objection on the process followed by officials in preparing fresh guideline rates for 2013-14 and had even challenged it in the high court. “Instead of giving any explanation, the district evaluation committee said it will incorporate changes as suggested by us,” he added.
