Despite the real estate sector showing a slight slump in past one year, property prices in Bihar are not likely to go down. The reason being that state government has initiated the process to revise market value rate (MVR) of land and flats in all districts of Bihar, including Patna.
The revised MVR would be finalised by March end and applicable from April 1. Authoritative sources in the registration department said this time the MVR of land and flats would be increased by nearly 20-25% in comparison to the existing rates. The rates of developing regions and urban areas in all the districts would be revised, added the sources.
In simple terms, buyers going for flats and land in the state capital and other parts of Bihar would have to shell out more as stamp duty for registration.
Revision of MVR - the base rate for fixing the stamp duty of any property in a location - has become an annual exercise in the last few years, as part of the state government's objective to get proper revenue from stamp duty by minimising the gap between the govertment rate of land and the market rate.
The revision of MVR has had its impact on revenue collection with the state earning more than Rs. 1,000 crore as revenue from registration during the last few years.
In Patna circle, one of the highest revenue collection centrefs in the state, the revenue collection till December has been satisfactory in comparison to the figures last year.
"We have already surpassed our target for this year," said an officer in the Patna sub-registry office. Needless to say, the revision of MVR has been a major factor behind the rise in rates of flats in the city, especially in main localities like Boring Road, Nageshwar Colony and Fraser Road have gone out of bounds fror the salaried class, with prices ranging from Rs. 5,000 to Rs. 6,000 per square feet. Land in posh localities are priced between Rs. 25 lakh and Rs. 35 lakh per katha.
Even in upcoming localities like Jagdeo Path and Khagaul, flats are being booked at a rate of Rs. 2,500 to Rs. 3,500 per square feet, which surely is no less than the rates of flats in cities like Noida, Pune and Gurgaon.