Gurugram records 22% rise in stamp duty collections

Gurugram records 22% rise in stamp duty collections

June 12, 2019 in Uncategorized

GURUGRAM: Stamp duty collections in Gurugram have risen by approximately 22% in the past two years, despite the ongoing slump in the city’s real estate sector. The numbers are more surprising, considering reports of fewer new project launches and an inventory pile-up. The total stamp duty collected in the district was Rs 1,284 crore in financial year 2016-2017, which rose to Rs 1,303 crore in 2017-18, and to Rs 1,560 crore in 2018-19. The numbers cover all three tehsils and one sub-tehsil of the city, including Gurugram, Manesar, Farrukhnagar and Wazirabad. Wazirabad, covering the whole of Golf Course Road and Southern Peripheral Road was made a sub-tehsil in 2017-18. Not surprisingly, in 2018-19, 43% of the stamp duty collected — approximately Rs 678 crore — came from Wazirabad. According to deputy commissioner Amit Khatri, there are three reasons for the steady increase in stamp duty collections, the major one being stabilisation of circle rates over the past few years. “Circle rates of Gurugram district were regularly lowered in 2016-17 and 2017-18, as the government wanted to give the real estate sector a boost. Circle rates were again raised only in 2018-19.” While the Haryana government kept Gurugram’s circle rates stable between 2014-15 and 2015-16, they were lowered over the next two years — by 10-15% in 2016-17, and again by 5% in 2017-18. Last year, they were again raised by 10-25%. Khatri added that besides stable circle rates, ease of access and improving city infrastructure has ensured continuous investments in land, and hence increase in stamp duty collections. Industry voices, though, differed from Khatri, saying increase in stamp duty collections don’t necessarily mean growth in investment in the real estate sector. Praveen Jain, chairman, NAREDCO and MD, Tulip Infrastructure, said rise in stamp duty collections is a result of many long delayed projects that are now nearing completion. “Many long-pending projects are now nearing completion, and homebuyers are registering their properties, which explains the rise in stamp duty collections,” said Jain. He added that investment by developers in new projects remains extremely low. According to developers, another reason for the rise in stamp duty collections is the increase in floor area ratio (FAR) for independent plots. “Many transactions are happening due to higher FAR on plots, allowing addition of independent floors to plotted houses, which is another reason for the rise in stamp duty transactions. If you look at the purchase of bigger land parcels by developers, they have almost come to a halt,” said a city-based developer. Sources: realty.economictimes.indiatimes.com

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