Pune’s registration and stamps department has successfully met its fiscal revenue target of Rs55,000 crore, surpassing expectations well before the March 31 deadline. As of March 27, the department registered an impressive 29.01 lakh documents, marking a notable increase from the previous fiscal year’s 27.9 lakh. This growth has been largely driven by high-value property transactions, particularly in metro cities, and reflects the continued dynamism of the city’s real estate market.
The surge in registrations has significantly boosted revenue collections, with the month of March alone seeing an all-time high of Rs5,173.97 crore. Typically, monthly collections hover between Rs4,000 crore and Rs4,500 crore, but the final month of the fiscal year has surpassed expectations. The department anticipates that the figures will rise even further, as they plan to operate through the Gudi Padwa weekend and the final day of the financial year, March 31, extending their services to accommodate the final push for property tax settlements.
Throughout the 2024-25 financial year, the department maintained a consistent pace of document registrations, with each month surpassing the 2 lakh mark, except for November, which recorded around 1.8 lakh. Notably, the i-Sarita software, which has streamlined the registration process, saw steady usage, and revenue from leave-and-license agreements also contributed substantially to the overall collections. The revenue from high-value transactions in Pune’s metro areas, in particular, played a major role in this upward trend. The forthcoming hike in the ready reckoner (RR) rates, set for April 1, is expected to further fuel high-value property transactions, adding to the momentum.
Interestingly, the number of registrations in this fiscal year is the highest recorded since 2022, underscoring a stable and resilient property market. Developers and stakeholders have expressed optimism, with CREDAI members expecting a strong surge in registrations during the Gudi Padwa period. This trend demonstrates that the property market is not only robust but is also becoming a significant contributor to the state’s revenue. The steady increase in registrations and the corresponding rise in revenue is a clear indicator of market stability, especially amidst fluctuating economic conditions.
However, while the strong performance is commendable, it has sparked concern among some developers about the impending hike in RR rates. A senior member of the developer association voiced concerns that the rate hike, expected to take effect from April 1, could dampen the current momentum. The proposed increase aims to generate more revenue for other state schemes, but it has drawn criticism for potentially stifling the growth of the real estate sector, which has performed well in recent months. Developers had requested the government to delay the rate hike, citing the strong performance in the property market. Despite these concerns, the government remains firm on its decision, citing the need for additional funds for developmental projects.
In light of this, the department of registration and stamps has continued to exceed its targets over the years. Although it initially set a target of Rs60,000 crore for the 2024-25 fiscal year, it revised the target downward after a slow start in the initial months. Despite this adjustment, the department is on track to not only meet but possibly surpass its revised target by March 31, further cementing its position as the second-largest revenue contributor to Maharashtra’s exchequer.
The department’s revenue growth is a reflection of Pune’s thriving property market, a vital economic driver for the city and the state at large. However, as the government eyes further revenue generation through the RR rate hike, the broader implications for the real estate sector remain a point of contention. The outcome of these developments could significantly impact the trajectory of Pune’s property market in the coming fiscal year.