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Uttar Pradesh: Registry fee hike worries builders in times of slump
The Times of India  |  February 17, 2020

Abhijay Jha Ghaziabad

The UP government’s decision to hike property registry fees has left both homebuyers and developers disappointed. They feel the new rate will lead to higher property prices, thus further dampening the investor sentiment at a time when the real estate sector is going through a slump.

 

Earlier, the registry fee was Rs 10,000 for properties up to Rs 10 lakh and Rs 20,000 for properties over Rs 10 lakh. The new rates — a flat 1% of property cost — came into effect on February 14.

 

This means that if the cost of a flat is Rs 50 lakh, the owner will have to shell out Rs 50,000 against Rs 20,000 earlier. And if the stamp duty at 7% — which would be Rs 3.5 lakh — is added, then the owner will have to shell out about Rs 4 lakh extra for that Rs 50 lakh flat.

 

Animesh Choudhary, a potential homebuyer, said, “For the time being, I may have to abandon my plan to invest in a ready-to-move-in flat worth Rs 75 lakh. The change in registry fee will definitely put the burden on the middle-class looking to buy a flat.”

 

The move will also have a bearing in housing schemes by the Ghaziabad Development Authority (GDA) and other agencies such as the UP Housing Board.

 

“There are about 62 commercial properties worth Rs 400 crore and about 4,000 flats of the same worth, which the GDA is struggling to dispose of as there are very few takers for the same,” said Alok Kumar, member of the Federation of Apartment Owners Association (Fed AOA).