The state government has raised the registration fee by up to 50,000, which means that property buyers in Uttarakhand will now have to pay much higher prices for land and flat acquisition. These new rates, which were introduced following an official announcement, form a larger part of a wider re-arrangement of the circle rates of the states- minimum property values on which stamp duty and registration fees are based. This increase will affect thousands of potential customers at such fast-growing urban centres as Dehradun, Haridwar, and Haldwani.
The new rates, according to the officials, are adjusted such that the circle values are adjusted to actual market prices, which have been skyrocketing in recent years. As the demand for residential and commercial property in Uttarakhand increases, especially in the plains and the foothill areas, authorities believe that the previous registration charge did not encompass the expansion of the real estate market. Consequently, this has seen the government subsequently increase fees to guarantee an increased revenue collection and enhanced regulation of property transactions.
The increase is even more significant in some major localities, especially in the prime areas of Dehradun, like the Rajpur Road. It has been reported that the total transaction cost in certain regions may increase by a significant margin with an increase in registration and stamp duty fees. Although the amount of the increase may be different with the size of the plot, the location, and the kind of property, it is one of the most crucial revisions of property registration costs in recent years.
The move has received divergent opinions among people. According to real estate developers, as well as certain market analysts, the move would help formalise the property market and create a narrower gap between official and market values. They cite that matching the circle rates with actual selling prices will help in keeping down the transactions that are underreported and encourage transparency. The increase in annual revenue is also likely to be significant because of the increases on the hike that will aid in the development of infrastructure and civic purposes by the government.
Nonetheless, most potential home buyers, particularly the middle classes and individuals investing in the property market as first-time investors, are afraid that the charges will escalate to levels that are not affordable to buy property. The increased registration fee is an added financial strain to a state where the price of building and land is already on the increase. There are also some estate agents who predict the temporary slowdown of transactions in the property as people adapt to the new rates.
Regardless of the concerns, the authorities believe that the revision was not only needed, but also overdue. They say that the improved fee system will eventually come to the good of the economic planning of the state and will generate more accountability in land and housing transactions. The changes that are currently in effect have left property purchasers recommended to check revised fee charts and to seek advice from registered agents before making a land or flat purchase in Uttarakhand.
