The state government recorded an impressive 43% increase in stamp duty in the financial year ended March 31, 2022, as compared to last year, heralding a solid bounce back in the real estate market.
There has also been a 25% increase in number of sale deeds executed in 2021-22 compared to 2020-21. In the financial year 2021-2022, state government collected Rs 10,606 crore in stamp duty. Stamp duty revenue for 2018-19, 2019-20 and 2020-21 was Rs 7,781 crore, Rs 7,701 crore and Rs 7,390 crore, respectively. Compared to 2020-21, stamp duty in 2021-22 increased by more than Rs 3,000 crore.
Despite the impact of Covid-19 in the first half of 2021-22, property registrations stood at 14.3 lakh, almost 3 lakh more than in the previous year. In 2018-19, 2019-20 and 2020-21, the number of property registrations in Gujarat was 12.4 lakh, 12 lakh and 11.4 lakh, respectively.
In the financial year 2021-22, the highest revenue from stamp duty and registration was registered in Ahmedabad (Rs 3,398 crore), followed by Gandhinagar (Rs 2,513 crore), Surat (Rs 1,212 crore) and Rajkot (Rs 595 crore). Gandhinagar registered the second-highest revenue numbers because of rapid urbanization.
Industry players said record levels of revenue from stamp duty in the past financial year signal that the real estate sector has recovered from the negative impact of the pandemic.
Ajay Patel, chairman of the Gujarat chapter of the Confederation of Real Estate Developers’ Associations of India (Credai), said, “There are multiple reasons behind higher sales. Lower housing loan interest rates have encouraged people to buy homes in a big way. Post lockdown, people felt the need to invest in bigger houses pushing demand.”
“The real estate market is also on upswing following the influx of migrants from other states into Gujarat, a manufacturing hub of India, and revival of investment by NRIs post second wave of Covid. All these factors combined have helped the real estate sector,” Patel added.