Residential property sales have reportedly contributed the highest share to Gujarat’s total stamp duty and registration fee collection in the past six years between April 2017 and March 2023.
Stamp duty and registration charges from the residential sector shot up 63.57 per cent between April 2017 and March 2023, according to data compiled by the Confederation of Real Estate Developers’ Associations of India (CREDAI).
The commercial segment, meanwhile, contributed only 5.49 per cent, showing a worrisome trend as this indicates slowdown in major economic activities and projects a bleak business and investment outlook. The retail segment contributed 11.18 per cent to stamp duty and registration fee collections.
Data shows the residential segment continuously outperforming all other segments, with a 54 per cent share in the total document value over the last six years. Plotting sales too have remained higher across the state, contributing 20 per cent to the total stamp duty and registration fee collections.
A Credai Ahmedabad official said, with the upgrade in lifestyle, Gujarat had seen high demand for good housing and thus deals were forthcoming fast. Increase in income meant people were moving to bigger houses.
Families earlier living in a 1BHK have moved to 2 or 3 BHK homes. Other than that, people have bought plots in high numbers. So, both these segments have contributed significantly to the collections.
Migration is also playing a big role in rising housing demand. Experts say more people are shifting to nearby towns and cities for employment and business, which is generating new demand for houses.
“Commercial real estate sales were badly hit by Covid-19 and supply, too, has decreased over the years. However, new projects are coming up as work from the office has resumed,” a property consultant said.
The commercial segment saw document value since 2020-21 fall below Rs 10,000 crore.
In 2022-23, this real estate segment saw a total documents registration value of Rs 7,710 crore, which is significantly lower than Rs 30,881 crore in 2018-19.