PANAJI: After a gap of four years, the revenue department has moved to revise the base price for land rates in the state. The move comes amidst sustained speculation in Goa’s property market, particularly from high networth individuals from other states.
While seeking to rake in additional revenue, govt also wants to bring in reforms to improve the ease of doing business in the registration department.
“Goa govt is pleased to constitute a committee to determine, analyse and revise the base rates notified earlier towards various categories of land and built-up rates of properties. The committee shall be in force for a period of two years and shall meet quarterly once to review the progress,” said under secretary (revenue) Vrushika Kauthankar.
While govt has named 13 members on the committee, it has kept room for special invitees and experts.
The committee will be headed by the revenue secretary with members from Credai, GCCI, Goa Valuers Association, and the two collectors.
The committee will carry out the analysis of the current market trends and rates and propose the revised base rate for land in Goa. The committee has also been tasked with identifying and recommending the mechanism for periodical revision of rates.
The committee will also suggest guidelines or a formula to calculate prices for different kinds of land and buildings, something like a ready reckoner for Goa’s land rates.
The development comes just weeks after the cabinet approved an over 100% increase in property rates for coastal talukas of Bardez and Pernem, where demand for real estate has surged, particularly after the airport in Mopa.
The five talukas of Bardez, Tiswadi, Salcete, Mormugao and Pernem account for close to 2 lakh property transactions in a year, with Bardez alone accounting for more than 36,000 land deals. It’s no surprise that the cabinet opted to increase the minimum price per sq metre for Bardez and Pernem talukas from Rs 3,000 to Rs 8,000. However, this increase does not apply to residential properties on plots up to 500sqm. One of the key motivating factors behind this decision is to increase the govt’s revenue, said officials.
The notification issued by the revenue department said that the committee will “suggest the ways to improve the revenue mobilisation and collection of state govt”.
Minimum land prices, officially known as the base rate, were tweaked in Aug 2020. An increase in the base rate allows govt to rake in additional stamp duty and registration fees.
A realtor said that an increase in the minimum land rates will increase the cost of buying a home for first-time homebuyers and smaller investors.
