Congress government's move to hike market values leads to a 37% fall in registrations📉
The recent increase in land registration values has dealt a significant blow to the already struggling real estate sector, with registration numbers and government revenue witnessing a sharp decline within days of the revised rates coming into effect.
According to data released by the Stamps and Registration Department, land registrations dropped by 37% in the second week of the month following the implementation of the new market values on the 5th.
During the first week of the month, 27,985 documents were registered, generating ₹252 crore in revenue.
However, between the 8th and 14th, registrations fell to 17,663 documents, while revenue declined to ₹164 crore.
The week-on-week comparison reveals a decrease of 10,322 registrations and a revenue loss of ₹88 crore, raising concerns about the impact of the government's decision to increase land values.
Data also challenges claims that buyers rushed to complete transactions before the revised rates came into effect.
In the first week of May, 22,068 documents were registered, generating ₹234 crore in revenue, compared with 27,985 registrations and ₹252 crore in the first week of this month.
The decline becomes more pronounced when compared with the second week of May, when 21,387 registrations generated ₹279 crore.
This month, the same period recorded 3,724 fewer registrations and a revenue drop of ₹115 crore.
The Congress government recently increased land registration values by 25% to 100%, with steeper hikes in municipal areas and within Outer Ring Road limits.
Industry stakeholders argue that the higher costs have discouraged buyers, with many postponing plans to purchase plots and apartments.
Real estate experts warn that registrations could decline further once pending transactions which were agreed upon before the hike are completed.