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Gujarat's property market is booming, with the state government's revenue from stamp duty and registration fees shooting up by 60% in the financial year 2023-24. That's a massive increase of INR 5,171.97 crore compared to the previous year. To put it simply, the government collected INR 13,731.63 crore in stamp duty and registration fees in 2023-24, up from INR 8,559.65 crore in the previous year.
This rise in revenue can be attributed to two main factors. First, there has been a big increase in property transactions across the state. The number of property documents registered jumped by 36%, reaching 18.26 lakh in 2023-24 from 13.43 lakh the year before. That's an increase of 4.83 lakh registered documents, showing a clear rise in buying and selling activity. Second, a recent increase in Jantri rates played a role. Jantri, also known as the ready reckoner rate, is the government's minimum valuation of land for property transactions. Doubling these rates in February 2023 effectively increased the stamp duty levied on property sales.
While the real estate boom is positive news for the state government's coffers, it's important to consider the impact on both buyers and sellers. Higher Jantri rates translate to increased stamp duty, potentially impacting affordability for some buyers. This could lead to a slight dampening of demand, particularly for budget-conscious buyers. However, the significant rise in transactions suggests continued buyer interest in the Gujarat property market. This could be due to a combination of factors, including positive economic sentiment, low interest rates on home loans, and a perception that property prices are likely to continue rising in the long term.
Looking ahead, it will be interesting to see how the Gujarat property market evolves. Jenu Devan, Superintendent of Stamps, acknowledged the record-breaking revenue and attributed it to both the Jantri revision and the increased number of transactions. He highlighted the government's commitment to analysing data and improving the efficiency of the property registration system. As the market continues to boom, the government will need to strike a balance between generating revenue and ensuring affordability for property buyers. This will be crucial for sustaining the long-term growth of the Gujarat real estate sector.
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