Property registration dips by 33% | india | Hindustan Times
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Property registration dips by 33%

india Updated: Jul 21, 2011 00:55 IST
Sanjeev K Ahuja

Although enquiries to developers on properties have increased in Gurgaon on account of the ongoing land acquisition crisis in Greater Noida, they have not translated into registrations on ground.

According to industry sources, investors are now looking for safer options in the NCR. However, the high prices and registration costs are turning to be dampeners.

The steep rise in circle rates, to the tune of 150% in the last one year, has pushed up stamp duty and resulted in a dip of property registrations up to 33%.

In contrast to 180-200 properties being registered per day before April 1, 2010, the daily average has come down to around 130 since the last two months. The positive fallout of this development, however, is that only genuine buyers are left in the fray.

In a bid to do away with the high black money component in property transactions and avoid revenue loss to the state exchequer, the Haryana government had last hiked circle rates on March 31 to the tune of 20-30%.

Last September, the rates were hiked by over 100% in some areas. This out-of-turn increase was announced soon after the annual hike on March 31.

Navin Raheja, managing director, Raheja Group, said the move had been successful in bringing in serious buyers.

Government officials, however, are not ready to accept the argument that the hike in circle rates is the reason behind the downward trend.

"Registrations have come down in the last few days because of various measures implemented by us to make property deals transparent. We have made it mandatory for buyers to paste their photographs on affidavits. Earlier, a person living in the US could get his affidavit made in Gurgaon. We have also stopped registration of properties falling in unauthorised colonies. All these measures have discouraged fraudsters from registering fake deals," said Gurgaon deputy commissioner PC Meena.