PUNE: Nashik, Nagpur, Amravati and Latur regions have registered positive growth in 2011-12 fiscal for property transactions, even as document registration in Mumbai, Thane and Pune divisions fell.
Except Nagpur, a major market in Vidarbha that has financial ties with Hyderabad, no other division has high-valued property transactions. Nashik is closer to Mumbai, but high-value property transactions are not on the horizon, said a revenue official.
A senior revenue official said, "As per our rough estimates at least 40,000 flats have remained unsold in Mumbai and Navi Mumbai areas. The actual number could be higher, but it is difficult to state the exact figure."
Though the office of inspector general of registration and stamp duty reported a rise in stamp duty collection by Rs 932.61 crore on March 31, 2012 as against the previous year; it was attributed to higher interest rates on home loans, revised ready-reckoner rates and high-valued transactions.
The department processed 23.89 lakh documents in 2010-11 as against 23.58 lakh in 2011-12, which means a decline of 30,000 documents.
The official said, "We are compiling data for all the eight divisions in the state. Once it is ready we would know more about the trends of buyers from property registrations. Like every year, in January 2011, the ready-reckoner rates were revised and they were increased by about 20%. It naturally added to the value of property and prices escalated. The situation worsened, when potential buyers faced increased property rates and higher interest rates on home loans. It discouraged the buyers from property purchase and diverted some buyers to investing in gold."
Higher ready-reckoner rates, high value transactions in Mumbai and Thane divisions have managed to fetch more revenue in the 2011-12 fiscal. The ready-reckoner rates, which act as minimum slab to determine the prices of the properties in a particular locality-are revised at the end of the calendar year and come into effect from first day of the new year.
On the large number of unsold flats in Mumbai, the official said, "Most upcoming constructions are not very close to business hubs in Mumbai and Navi Mumbai. The exorbitant prices certainly reduced the number of documents processed in Mumbai and Navi Mumbai region, but the deals that took place in the financial year 2011-12 were of much higher price."
For instance, a Rs 50-lakh budget may be sufficient in Pune to buy a flat in areas like Karvenagar, Baner, Aundh and Balajinagar among others. In Mumbai, few flats will have a Rs 50- lakh tag and the buyer will have to shell out a minimum of Rs 60 lakh or even more. Unlike Mumbai, Pune has an advantage of horizontal growth which is keeping the prices slightly lower than the state capital, the official said.
While the property rates continued to escalate in Mumbai, people settled for leave and license agreement and invested their money in gold. The stock exchange was also volatile, which created uncertainty and people preferred investment in gold stocks, another official from the revenue department said.
Source:timesofindia.indiatimes.com
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