Stamp duty collections in Punjab may see a downward trend due to the slowdown in the realty sector
The Punjab government’s ambitious plan to mop up Rs 2,760 crore in the current financial year from stamp duty and registration fee is going to be a difficult task. This is due to the slowdown in the real estate sector.
According to real estate experts the buyers are yet to enter the market, however are waiting for more favorable conditions like lowering of home loan interest rates and price reduction in the property prices. Depending on the location, the property prices have undergone a correction to the tune of 10-30 %. However the realtors are still not able to lure the customers even after reducing the prices.
Property consultants also explained that the high realty prices, low appreciation and lack of funds had kept most investors away from the real estate market for almost two years now.
The property prices going downhill in Punjab and while some might see it as a correction, the others think that the realty bubble might burst any day. Harpreet Singh, a sales officer with a local developer stated that the real estate business in the state had recorded an unprecedented fall. This happened over the past five months or so. Land prices had either come to a standstill or, in some instances, were drastically down. Hence this is a good time when the buyers should pick up the properties and choose a good location which will give them good returns on investments.
Source- Business Standard
high realty prices, Home loan interest rates, low appreciation, Property Consultants, slowdown in the realty sector, stamp duty and registration charges, Stamp duty and registration department
