Get ready to loosen your purse strings for buying a plot or flat. From August 1, according to notification of the state registration department, the registration fee for land would be 20 per cent more from the existing one while that of flats and apartments would rise by 10 per cent from the existing rate.
When contacted East Singhbhum sub registrar Ashok Sinha said that this was the first instance when land and structure rates in urban areas have been hiked twice in a year in the state. As per state registration department rules, land and structure rates needed to be hiked every year in urban areas, while in rural areas the rates are revised every two years. In Jharkhand, the new rates are implemented from August every year.
Officials of Jamshedpur chapter of Builder Association of India (BAI) expressed concern over the hike. T C Mohanty, senior functionary said that the residential market in the city has gone over the top. The real estate market in the city has been doing exceptionally well for the past 10 months but in past years while residential and retail prices have shot up, commercial prices in all major places have been keeping pace with inflation.
The demand for property has been rising in cities like Jamshedpur and Adityapur as people hunt for calm surroundings. These two areas are now witnessing fast paced growth in terms of real estate developments across all the sectors-residential, commercial and retail.
“The increase would not affect builders and real estate developers directly. However, we can feel for the middle class property buyers will feel the pinch by hike in valuation taking place twice in a single year,” he noted. When residential requirements were met to a limited extent, the status of Steel city as a realty destination escalated high. Now property in Steel city has become very expansive making people look for quieter yet fully equipped housing address on the national highway (NH-33) connecting state capital Ranchi to Kolkata.
“lack of vacant land in the city is also big hurdle for us. The builders are moving towards highways and the good thing is that we are getting good response here also and more over the rise in registry would further increase the woes,” said a city-based builder. For the record, East Singhbhum district has been given a revenue target of Rs 76.50 crore in the 2013-14 fiscal through registrations as against the revenue generated in 2012-13 to the tune of Rs 72.59 crore.