Property rates to be unaffected by hike in collector rates,say dealers

According to officials,from September 15,the enhanced Collector Rates will be implemented and all properties registered thereafter,will be done as per the new rates.

At present,the collector rate for residential premises in urban areas is Rs 49,920 per sq yard. The charges for the same in rural areas (in villages under the Municipal Corporation) are Rs 6,240 per sq yard and Rs 4,160 per sq yard in other villages of the UT. After September 15,these rates will be enhanced to Rs 54,912 for residential premises in urban pockets,Rs 6864 in rural areas (in villages under the Municipal Corporation) and Rs 4576 in other villages of UT.

At the same time,real estate consultants are satisfied that this time,unlike in the past,there is no change in the stamp duty. As of now the stamp duty is levied at the rate of five per cent in the city,which is less than that in the neighbouring states of Punjab and Haryana.

The increase in collector rates comes in the wake of the 20 per cent hike in the collector rates in Mohali and Panchkula,recently.

Sources say that unlike last year,when the rates were revised in August,this year,the UT Administration has lost out on the revenue that it could have earned had the notification been released in August.

J K Sethi,president of Property Dealers Association of the city said,“Had the hike been between 30-40 per cent,it would have significantly affected the market prices. But with a 10 per cent hike,it will have little effect on the market values of the properties as already in Chandigarh,the market value of properties is three to four times higher than the collector rates”.

Last year,in August the rates were increased by 25 per cent. A senior official said a notification to increase the collector rates for calculating stamp duty in the registration of a property in urban and rural areas was being issued.