Continuing its robust bounce back after the Covid-19 pandemic, the real estate sector notched up an impressive performance in the year 2022, with property registrations up 11% and government revenue in the form of stamp duty and registration fee rising by 19% over the preceding year.
According to official data, the number of properties registered in 2022 in the state stood at 15,97,188, 11% higher than 14,29,607 properties registered in the preceding year. Government revenue from stamp duty and property registration also shot up from Rs7,337.9 crore in 2021 to Rs8,769 crore in 2022, a rise of 19%.
Compared to 2020, when the pandemic was raging and lockdowns had to be imposed bringing construction activity to a grinding halt, the state recorded a 57 % rise in property registrations and a 94% rise in revenue from stamp duty in 2022.
In Ahmedabad, the number of properties registered has witnessed a marked increase over the past three years. In the district, 1.73 lakh properties were registered in 2020, which increased to 2.63 lakh in 2021 and 2.96 lakh in 2022. The revenue from stamp duty and registration fee shot up from 1,331 crore in 2020 to 2,310 crore in 2021. In 2022 the government revenue from stamp duty and registration fee in Ahmedabad stood at 2,963 crore.
Sources in the real industry said while the continuing trend of increase in property registrations signals a bounce back for the real estate industry, a reduction in stamp duty and registration fee will further spur growth in real estate.
Ajay Patel, chairperson of Confederation of Real Estate Developers’ Associations of India (Credai) Gujarat, said,
“People had shelved their investment plans because of financial uncertainty during the pandemic. Its spillover effect is now being seen. The real estate market is growing at a healthy pace, but a reduction in stamp duty charges will further fuel growth of this sector.”
Tejas Joshi, president, Credai, Ahmedabad said that infrastructure development is on an upswing in the state and non-resident Indians (NRIs) are also purchasing property in Ahmedabad city.
“The property market in Ahmedabad is cheaper compared to other equivalent cities in the country and we expect the robust real estate growth to continue,” said Joshi.
NRIs can buy or own immovable property in India in compliance with the FEMA (Foreign Exchange Management Act) regulations.