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Time of India
a day ago
- Business
- Time of India
1% stamp duty hike likely to overcome Q1 property revenue shortfall
Bengaluru: Revenue shortfall from property registration in the first quarter of this fiscal has prompted the Karnataka govt to actively consider increasing stamp duty by 1%. The stamp duty was last revised in 2013. At present, the govt levies 5% stamp duty on the guidance value (minimum selling price of property fixed by the govt), 1% registration fee, 0.5% cess, and 0.1% surcharge. In all, property buyers pay 6.6% in cess and duty. They might end up 7.6% if the govt clears the hike proposal. Chief minister Siddaramaiah, who holds the finance portfolio, convened a meeting on June 18 to review the performance of the department of stamps & registration. Taking a serious note of the shortfall, he reportedly directed both finance and stamps & registration departments to take measures to improve revenues. Finance officials suggested upward revision in stamp duty. Sources said the CM will take a final call once there is consensus between revenue and S&R departments. Karnataka has the lowest stamp duty among its neighbours, barring Andhra Pradesh. Tamil Nadu levies 11% that includes stamp duty and registration fee, and Maharashtra imposes 7%. Underwhelming revenues from property registration have been a cause of concern, as it potentially implies a sluggish real estate sector. While Siddaramaiah fixed a target of Rs 26,000 crore for 2024-25, he was forced to downscale it to Rs 24,000 crore. But the department could collect only Rs 22,500 crore by the end of the year. This fiscal, the CM fixed a target of Rs 28,000 crore. Going by this, the department was to have collected Rs 7,000 crore on average in the first quarter that ends on June 30. It collected Rs 5,556 crore, logging a 35% shortfall. "The govt is obviously worried about the revenue shortfall, but a stamp-duty hike is not the solution. It should realise that the shortfall is mainly due to the ill-implementation of the policy mandating e-khata for registration and tech glitches in the Kaveri portal. The govt does well to rectify this instead of hiking stamp duty," said T Bhaskar Nagendrappa, state president of Credai (Real Estate Developers' Associations of India). He said the govt increased its guidance value by 39% in 2023, and any hike in stamp duty would make property purchase costlier and negatively impact the sector. "The irony is the govt decided to keep sub-registrar offices open on weekends. But what's the use if the portal is glitch-ridden and e-khatas are not issued," said one sub-registrar. Ends GFX Sagging S&R Revenues 2024-25 Original target: Rs 26,000 crore Revised target: Rs 24,000 crore Achieved: Rs 22,500 crore 2025-26 Annual target: Rs 28,000 crore Target till June 30: Rs 7,000 crore Achieved till June 19: Rs 5,556 crore Source: GoK
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Business Standard
13-06-2025
- Business
- Business Standard
Credai, Adani Cement tie up for workforce skilling, green construction
The Confederation of Real Estate Developers' Associations of India (Credai), which represents over 13,000 private real estate developers, on Friday announced a strategic partnership with Adani Cement to accelerate sustainable construction and workforce skilling. As part of the agreement, Adani Cement will become Credai's preferred partner in providing its portfolio of Green Rating for Integrated Habitat Assessment (GRIHA)-certified products, including green concrete solutions, advanced additives and technical services. The conglomerate will also offer on-site technical support and knowledge-sharing programmes to upskill engineers and construction professionals within the Credai network. Green and Skilling Councils to be launched The partnership will also entail the launch of a Green India Council and a Skilling Council, both aimed at building an environmentally conscious and professionally equipped real estate sector. The Green India Council will oversee a wide spectrum of sustainability initiatives, including large-scale reforestation efforts aimed at converting barren landscapes and significantly increasing green cover. 'The council will also support urban forest creation, greening of public spaces, and adoption of green building standards nationwide,' Credai said in a public statement. The Skilling Council, meanwhile, aims to create a future-ready workforce, with active participation from Credai's state chapters and member developers to drive large-scale upskilling across regions. Addressing skill gaps in real estate While the real estate sector is one of India's largest employment generators, persistent skill gaps across the workforce impact efficiency, project timelines and on-site safety. With a goal of training a large number of workers over the next five years, the Council will roll out targeted programmes across 25 cities. The first phase, set to launch by mid-July 2025, aims to train over 15,000 workers. Commenting on the partnership, Shekhar Patel, President of Credai, said the launch of the Green India Council and Skilling Council marks a decisive step towards integrating sustainability and workforce development into the core of the industry. 'These initiatives reflect Credai's commitment to a built environment that drives economic growth, protects the environment, and uplifts communities,' he added.
Indian Express
07-06-2025
- Business
- Indian Express
Maharashtra Deputy CM Eknath Shinde calls for empowering of real estate sector to deliver economical housing
Maharashtra Deputy Chief Minister Eknath Shinde on Saturday called for empowering the real estate sector to ensure the delivery of economic housing. He was speaking at the installation of Manish Jain as the president of Credai Pune. Shinde said during the Covid-19 pandemic, the real estate sector had stepped up in terms of work and delivery of government revenue. 'The stamp duty was reduced, but still the revenues were remarkably high,' he said. Shinde said Mumbai developed rapidly during his tenure as the chief minister, and he said Pune requires similar growth. The deputy chief minister said reforms like unified Development Control and Promotion Regulations (DCPR), stamp duty relief, and infrastructure upgrade can push Maharashtra towards becoming an investment magnet. Poor infrastructure, he said, maligns the image of a city. Shinde promised that the concerns of Credai, the apex body of real estate developers, would be addressed in time. 'Our goal is simple: development, development, and more development—and Credai will be a key partner in that journey,' he said. Main Manish, the new president of Credai-Pune, presented a series of key issues before the minister. He emphasised the need for greater interdepartmental integration to streamline the building sanction process, proposing that building permissions be processed concurrently with environmental clearance, so that construction can commence immediately once the EC is granted. Highlighting the inefficiencies, he remarked that nearly 90 per cent of a developer's time is spent on obtaining sanctions, while only 10 per cent goes into actual construction. He also urged a phased and results-driven approach to Town Planning Schemes (TPS), recommending that two pilot schemes be implemented and evaluated for effectiveness before scaling up, ensuring more structured and impactful outcomes. Addressing governance-related challenges, he highlighted the urgent need to protect developers from undue harassment by blackmailers, advocating for stronger collaboration with police and law enforcement agencies.
Time of India
04-06-2025
- Business
- Time of India
Top metros dearer than Pune in co-living rent, except Chennai
Pune: Co-living rentals in Pune are easier on the wallets of renters compared to other metro cities in the country but are marginally costlier than those in Chennai. This is due to the correspondingly lower average rent of entry-level apartments in the city, data from real estate services firm Colliers India showed. Tired of too many ads? go ad free now The average co-living rent in Pune ranges from Rs 9,500 to Rs 15,700 per month, while the average rent of a premium co-living facility in a city like Bengaluru or Mumbai is Rs 23,700 and Rs 27,500 per month, respectively. The differential in rent between co-living and regular apartments for all cities is around 25-35%. Despite being the cheaper option, availability of co-living facilities is very limited as it is a relatively untapped market. Colliers India estimated that the overall capacity of the co-living segment is very low at 3 lakh beds compared to 5 crore migrant population moving within the country. However, it is expected to grow to 10 lakh beds by 2030 as more developers enter the segment. In Pune, developers are increasingly incorporating co-living units into standalone or mixed-use developments to cater to the growing demand, Manish Jain, president, Credai's Pune chapter, said. Co-living involves tenants sharing common facilities and spaces while having their own private rooms. It is particularly suitable for single occupants who are not immediately looking to buy a home, want to save on rent, and desire flexibility in the duration of their stay. Typically, the duration of stay ranges from eight to 12 months. "This sector has seen a rebound in Pune post-pandemic, especially during the last couple of years, with most companies from the IT sector adopting a flexible model for work from home and office," Saurabh Garg, co-founder, NoBroker, said. Tired of too many ads? go ad free now Co-living is mostly favoured among the service industry-intensive areas, such as Hinjewadi and Kharadi, on the western and eastern sides of the city, and in some pockets, including Vimannagar and Kalyaninagar. Besides single professionals, industry experts expect demand from postgraduate students, as not all educational institutes can accommodate the increasing number of students in their hostels. Rising migration to the top metro cities and the growing preference of white-collar workers for professionally managed spaces are also driving growth in the co-living sector. "With over 1,400 colleges and thriving job opportunities in areas like Hinjewadi, Kharadi, and Chakan, the city continues to attract young professionals and students aged 25–35. For this segment, co-living offers an ideal solution that is affordable, well-maintained, and in preferred locations," said Jain.
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Business Standard
16-05-2025
- Business
- Business Standard
Affordable housing cap needs rethink, says Credai's Shekhar Patel
The Credai president said that while the size limits of 60 square meters for metro cities and 90 square meters for non-metro cities were generally acceptable, the price cap was deterring developers Gulveen Aulakh New Delhi Listen to This Article With escalating housing costs, the government should reconsider the ₹45 lakh cap defined by the government for affordable housing, which was last set in 2019, said Shekhar Patel, president of the Confederation of Real Estate Developers Associations of India (Credai). 'The ₹45 lakh home in 2019 has now become ₹75 lakh, according to the Reseve Bank of India's housing price index and other data that show that the costs have escalated. There should not be a price limit,' Patel, who is also the managing director of Ahmedabad-based Ganesh Housing Corporation, told Business Standard. The Credai president said that while the
