During the April-August this year, the department earned Rs 2224.26 crore compared to Rs 1572.81 crore in the same period last year, posting a growth of over 41%. While 2020-21 was considered a Covid year when the demand shrunk significantly, the stamp and registration collection in the year revered sharply in the latter half of the year.
In 2019-20, during the comparable period (April-August), the collections stood at Rs 1791.18 crore which came down to Rs 1572.81 crore in 2020-21, a decline of 12%. But in the current year, the growth has surged to 41%.
Property developers in the city said the growth in government’s income over the past five months reflects some momentum on the ground and there are several factors that drive the uptick.
Anand Mishra, vice-president of Credai Rajasthan, said, “We cannot deny that these numbers come on a low base as during the first half of the 2020, lot of demand destruction happened. But currently, the demand is certainly rising, riding on reduction of stamp duty, pentup demand and supply of new projects.”
Some in the real estate industry said that today it is not purely an end-users market as investors are also seeing opportunities at lower price propositions.
Rajesh Dukia, director of a real estate firm, said, “The current demand is driven both by the end-users as well as investors. Covid has pushed people to buy a second home who were earlier reluctant. Secondly, people find value in real estate now.”
Dukia said that all other asset classes like gold, silver and equity markets are already trading at record high levels. “People are edgy to invest in equity markets at these higher levels. On the other hand, property market has hit rock bottom in terms of prices. That’s why investors are now looking at real estate as a safe haven.”
The pandemic has also forced people not to lend in the grey market fearing defaults. Dukia said that businesses are still in lot of trouble and the risks in the grey market has increased. “This has diverted come capital into the real estate,” added Dukia.