Homes sold twice in the first wave of Korona, a sharp drop in the second wave in Gujarat

Gandhinagar, 17 June 2021
The stamp duty and registration fee of the Gujarat government have been increased by 150 percent. In 2020-21 Rs. 1235 crores. During 2019-20, this income was only Rs. 501 crore. In which there was an increase of one hundred and fifty percent in the last one year. The demand for housing has declined in the second wave of Corona. Hence the revenue of the government will remain below Rs 1,000 crore. It is expected that in 2021-22, instead of 1.5 lakh houses, one lakh houses will be sold. Demand has been sluggish as builders have increased prices by 20 per cent despite a fall in houses.

The new Jantri rates were expected to come to the state during 2021-22, so even in cases like 30 per cent in which documentation was increased for whatever reason, there is an increase in revenue as compared to the previous year.

A total of 78584 documents were registered during the year 2019-20 while a total of 161693 documents were registered in the year 2020-21. which is twice. Yet builders are increasing house prices citing the reason for the hike in prices. It has registered an increase of 15 to 20 percent.

Credai said the increase in steel and cement prices has increased the cost of construction by 20 per cent. Builders in Gujarat are demanding 50 per cent relief in stamp duty and registration fee from the state government but the government is not ready to give relief at the moment.

According to a survey by CREDAI, there has been a sharp decline in new residential sales and warehousing since April. Most developers fear delays in projects due to the lockdown in several states. Developers face challenges like labor shortage, economic constraints, delay in approvals, increase in construction cost and poor customer demand.