Administration all set to revise collector rates, residential property prices may go up

The UT Administration is preparing to revise the collector rates across various property categories, a move that could result in an increase in property prices, particularly of residential properties. Officials from the administration have confirmed that several meetings have already been held to assess and calculate the new collector rates based on a set formula. These rates are currently under review by the competent authority and will be notified once approved.

Collector rates, which represent the minimum value at which a property can be registered with the government, also determine the stamp duty payable. The last revision was made nearly three and a half years ago in April 2021. During that revision, the rates of commercial properties were reduced by 10%, those of industrial plots by 5%, while the rates of agricultural land were increased by 10%. No changes were made to the residential property rates that time, as the revision occurred in the context of the Covid-19 pandemic and an economic slowdown that impacted the real estate market.

However, this time, the administration is reportedly planning to increase the collector rates for residential properties to reflect the current market conditions. “Considering the ongoing real estate trends, the administration is leaning towards an upward revision for residential properties,” an official said.

The revision is based on an analysis of registered sale deeds, along with surveys conducted in markets and villages. Stakeholder demands, especially those related to commercial and industrial properties, are also being taken into account. Several business groups have argued that collector rates for commercial properties in some areas of the city are currently higher than market prices, prompting calls for rationalisation.

“There is a significant demand to reduce the collector rates for commercial and industrial plots in locations where rates are higher than the actual market value. The administration is carefully considering these requests and will take a final decision based on the market conditions,” the official added.

At present, the collector rates for flats under the Chandigarh Housing Board and various housing societies are ?4,500 per sq ft for ground floor, ?4,000 for first floor, ?3,690 for second floor and ?3,200 for third floor.

With the revision underway, real estate stakeholders and residents alike are eagerly awaiting the official notification, which is expected to have a noticeable impact on the city’s property market.

Present charges

The existing collector rates for flats under the Chandigarh Housing Board and various housing societies are ~4,500 per sq ft for ground floor, ~4,000 for first floor, ~3,690 for second floor and ~3,200 for third floor.