The economic slowdown has also slowed down property buying in the city. The number of properties registered during the financial year
2008-09, have come down by a little over 7% as compared to the previous year. According to the figures provided from the property registrar’s office, documents related to 57,527 properties were registered during the financial year 2008-09 while in the previous year the figure stood at 62,105 properties.
Year 2007-08 had seen a rise of about 1% in the number of documents registered as compared to 2006-07. Considering the fact that slowdown occurred mostly during the last two quarters of the financial year, it is pretty steep. However, the stamp duty collection recorded an increase in 2008-09.
The number of documents registered give an indication of the realty sales during the period. The state government levies stamp duty on the documents registered. In 2008-09, the stamp duty mop along with the registration fee stood at Rs 251 crore, compared to Rs 211 crore in the year before.
Realtors say this is because of the higher rates of properties and also because of the tendency to disclose higher purchase value in documents so as to avail bigger home loan. Slowdown has hit cash purchases by big ticket buyers but middle class purchases continued through bank finance though at a slower pace, say builders.
The ready reckoner, which provides a minimum benchmark rate for registering properties did not change during January 2009, The rates are revised every calendar year. This indicates that it is either the value or the higher amount shown in documents which has led to a higher stamp duty, say sources. In normal course, the change of rates is also a contributing factor in the rise in duty collection.
“The rates were in full boom from April 2008 to September, following which the demand was hit as slowdown spread. It is possible that the higher rates in the first half are reflected in the duty collection, which would have stabilised later. The prices have almost remained stagnant since October. Moreover, in order to get a higher loan, buyers have been registering properties at rates higher than the ready-reckoner, while cash buying has gone down,” said Tejindersingh Renu, a builder and secretary of Nagpur Chamber of Commerce Limited.
2008-09, have come down by a little over 7% as compared to the previous year. According to the figures provided from the property registrar’s office, documents related to 57,527 properties were registered during the financial year 2008-09 while in the previous year the figure stood at 62,105 properties.
Year 2007-08 had seen a rise of about 1% in the number of documents registered as compared to 2006-07. Considering the fact that slowdown occurred mostly during the last two quarters of the financial year, it is pretty steep. However, the stamp duty collection recorded an increase in 2008-09.
The number of documents registered give an indication of the realty sales during the period. The state government levies stamp duty on the documents registered. In 2008-09, the stamp duty mop along with the registration fee stood at Rs 251 crore, compared to Rs 211 crore in the year before.
Realtors say this is because of the higher rates of properties and also because of the tendency to disclose higher purchase value in documents so as to avail bigger home loan. Slowdown has hit cash purchases by big ticket buyers but middle class purchases continued through bank finance though at a slower pace, say builders.
The ready reckoner, which provides a minimum benchmark rate for registering properties did not change during January 2009, The rates are revised every calendar year. This indicates that it is either the value or the higher amount shown in documents which has led to a higher stamp duty, say sources. In normal course, the change of rates is also a contributing factor in the rise in duty collection.
“The rates were in full boom from April 2008 to September, following which the demand was hit as slowdown spread. It is possible that the higher rates in the first half are reflected in the duty collection, which would have stabilised later. The prices have almost remained stagnant since October. Moreover, in order to get a higher loan, buyers have been registering properties at rates higher than the ready-reckoner, while cash buying has gone down,” said Tejindersingh Renu, a builder and secretary of Nagpur Chamber of Commerce Limited.