In Bhopal, Madhya Pradesh, the state government’s proposal to revise land registration rates for immovable properties on a quarterly basis has sparked a range of reactions from developers and city planners. The Confederation of Real Estate Developers’ Associations of India (CREDAI) has voiced concerns that this frequent adjustment could deter investors from considering Madhya Pradesh as a viable option for property investments.
Currently, the cost of land registration stands at Rs 1 lakh, while property tax amounts to Rs 6 lakh. Linking the cost of registration to fluctuating property rates could adversely impact property tax payers, as they might face higher costs with each quarterly revision. Critics argue that such changes could lead to increased financial burdens for property owners and complicate the investment landscape.
Manoj Meek, the state president of CREDAI, expressed concern that the proposed quarterly revisions would complicate the process for investors. He noted that property transactions typically require five to six months to finalize. Frequent adjustments in land registry rates could disrupt this process, potentially leading to a decrease in investment in the state. Meek also highlighted that the link between property rates and property taxes could negatively affect property owners.
P Raju, managing director of Signature Group, echoed similar concerns, emphasizing that the quarterly rate revisions could create confusion and complications for both the public and developers. He suggested that the frequent changes could lead to uncertainty for property tax payers, who would have to deal with varying property valuations every few months.
On the other hand, Kamal Rathi, a city planner, argued that the proposed changes could enhance market transparency. He pointed out that in areas on the outskirts of Bhopal, such as Ratibad, Mandora, Chandanpura, and Kusalpura, the current collector guideline rates are significantly lower than the market values. This discrepancy has led to the purchase of properties, such as farmhouses, at inflated prices. Rathi suggested that increasing the collector guideline rates in these areas could better align with market values and improve transparency.
Overall, while some stakeholders believe that the revised quarterly rate adjustments could lead to greater market transparency, others are concerned about the potential negative impacts on investment and property tax payers.
