Fearing price escalation following the implementation of new jantri rates, Gujarat has seen a mad rush for property registration this fiscal. The value of property transactions skyrocketed by 84 per cent in the financial year 2022-23 primarily due to the closing deadline playing in the minds of buyers and relatively buoyant market sentiments across sectors.
The state saw property transactions worth Rs 8.45 lakh crore during this period, compared to Rs 4.59 lakh crore in FY 2022, according to stamp duty data computed by Confederation of Real Estate Developers Associations of India (CRDEAI).
Jantri is the minimum rate fixed by state governments for registration of any real estate property that undergoes a change in ownership. Earlier this year, the state government had proposed a hike in the jantri rate from April 15. Property owners and developers were in a frenzy to complete their purchase transactions before the rate hike came into effect.
The rush to complete purchase transactions yielded an income of Rs 10,639 crore through stamp duty and registration fees alone during FY 2023, an increase of 21.49 per cent against the previous fiscal.
These transactions spanned both residential and commercial properties, industrial land, agriculture and non-agriculture land, plotting as well as resale deals during the year across the state. In 2019-20, before the pandemic, property transactions stood at Rs 6.3 lakh crore.
Credai estimates say Gujarat saw the highest ever number of documents registered in a single year during FY 2023, which stood at 16.28 lakh.
Sources said Ahmedabad and its surrounding areas witnessed handover of close to 35,000 units. Overall property purchase sentiment has been positive and the jantri deadline also led people to close transactions before the fiscal year ended.
Sources also said, the actual transaction value would be even higher, considering cash transactions also make a substantial part of real estate deals. Gujarat witnessed fluctuations in the registered documents value over the past six years. However, the stamp duty and registration fee saw a constant growth with FY 2020-21 as an exception due to Covid-induced slowdown.
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