With an attempt to grow as serious brands, real estate developers in Ahmedabad are increasingly seeking higher transparency in deals. In what could highlight such a growing transparency among real estate deals in Ahmedabad, developers feel the city's stamp duty revenue contribution to the state is set to rise from 34 per cent to 42 per cent in next three years.
“Ahmedabad real estate market is moving towards 100 per cent transparency. And one of the ways to gauge that is how the city's stamp duty revenue contribution to Gujarat is set to rise from current 34 per cent to 42 per cent in next three years,” said Suresh Patel, president of Gujarat Institute of Housing and Estate Developers.
Seconding his views is Rajesh Vaswani, executive director, Venus Infrastructure & Developers Ltd. “If a developer has to build his brand, he'll have to take steps to ensure transparency in deals. When the real estate market in Ahmedabad is moving towards higher transparency, one of the ways it will reflect is through the stamp duty contribution. Of course, that will also take the eventual price rise into consideration,” said Vaswani.
Currently, the stamp duty on a realty deal is 4.9 per cent along with one per cent registration fee on the total deal amount. According to AS Chaturvedi of Federation of Real Estate Developers Associations of Gujarat (FREDAG), another way developers are ensuring transparency is by selling on carpet area.
“So far, almost all developers were selling properties on built-up and super built-up area. However, increasingly some developers in the city have begun selling properties on the basis of carpet area. This is bringing in more transparency in deals,” said Chaturvedi.
Meanwhile, Chaturvedi added that the rise in stamp duty will also carry an expected rise in prices by around 20 per cent.
