Real estate business is likely to take off again in Haryana following the state government decision to allow floor-wise registration of the houses falling under municipal limits, Huda sectors and Town and Country Planning licensed areas.
Besides making people in Gurgaon, Faridabad and Panchkula the legal owners of their part of the house, the move will also help the state earn revenue of around Rs 200 crore annually as additional stamp duty.
Property owners and those in real estate business say that the move would give a new push to property prices. They opine that property prices had peaked in Chandigarh after the government allowed floor-wise registration of houses.
State finance minister Birender Singh informed a decision has been taken in a high-level meeting held recently under the chairmanship of chief minister Bhupinder Singh Hooda to allow vertical division of houses and plots.
He said it would be applicable only to the residential units in authorised areas and vertical divisions of plots and increase in floor area ratio would not be allowed.
In the existing sectors and areas the size of plots on which floors are proposed to be registered independently should not be less than 180 square yards, he added.
Singh said that in addition to the normal stamp duty, 1% extra stamp duty would have to be paid by the party desirous of registering the floor-wise dwelling units through a separate challan. This additional stamp duty would be paid by the treasury to the municipal committee and Huda.
The minister said registration of floors could also be done in case of plots, which are yet to be constructed and there would be no restriction on the size of plots that could have multiple owners floor-wise.
For new sectors, Huda could devise rules and license fees keeping in view this decision. Singh directed to expeditiously carry out any changes required in the existing rules and regulations of HUDA and Town and Country Planning Department to make the decision legal.
Rajesh Oberoi, a leading real estate agent of Panchkula told FE that the step coupled with Union government move to revive the economy by ensuring cheaper loans for homes has brought smiles back on the faces of people. He said that developers in Haryana State are expecting brisk business in the coming days.
Ram Nath Pradeep, executive director of Central Bank of India who was here recently told FE that banks were flush with funds and there was no truth in rumours that banks were not extending finance to developers.
He said that infrastructure development was a focus area for the Bank. Kewal Vashisht another banker said that the demand for home loans may increase by 20 to 25 % now as queries for home loans have already started pouring in.
Avinash Jain, of Avin Properties says that ?Real Estate business would pick up as home loans are going to be cheaper and buyers who had disappeared from the market in view of slowdown would come back?.