Rising Property Rates Spark Outcry Among Real Estate Stakeholders in Bhopal

A Stir in Bhopal’s Realty Sector: Bhopal's recent spike in property guideline rates, adjusted for the second time this year, has sent ripples across the realty sector, drawing strong opposition from experts and developers alike. With increases deemed "exorbitant," the Confederation of Real Estate Developers' Association of India (CREDAI) voiced their discontent, arguing that the hikes would destabilize the market, strain home buyers, and impact property tax across the region. On Tuesday, CREDAI met with senior BJP officials to express their grievances directly, hoping to curb further escalations.

Stakeholder Concerns: Feeling Left Out of the Loop

Local developers expressed frustration over their diminishing influence in property rate determinations. "Who decides that a property priced at Rs 100 must now be sold for Rs 150? Are they familiar with the complexities of real estate transactions? Previously, we were part of these decisions, but now they proceed without our input," stated Manoj Singh Meek, a CREDAI member from Bhopal. According to him, such frequent rate hikes go beyond impacting buyers; they will affect roughly 600,000 families across Bhopal as property taxes also align with the revised guidelines.

Meek added that these hikes, in an attempt to boost stamp revenue, inadvertently impact middle-class families and discourage investors who need affordable land for business development. CREDAI is urging local leaders, including MLA Bhagwandas Sabnani and MP Alok Sharma, to voice these concerns to the Deputy Chief Minister, hoping for a resolution that maintains market stability.

Historical Context and Rising Costs

Aruneshwar Saran Singhdeo, ex-chairman of MP Awas Sangh, highlighted the contrasting policies between governments. Under the former Congress administration, guideline rates had been reduced by 20%, only for the BJP to restore them to previous levels. "In April, we saw the routine yearly adjustment. Now, just months later, we face another. Perhaps some high-demand areas influenced this decision, but is a 10% registration fee justifiable? Middle-class families paying Rs 5-6 lakh just to register property is excessive,”said Singhdeo. He advocates reducing registration fees to 5% to ease the burden on homeowners.

Market Instability from Frequent Rate Changes

Singhdeo noted that recurring rate hikes make potential buyers wary. Buyers postpone property purchases as prices inch beyond affordability. Frequent adjustments, he warned, will have a prolonged adverse impact on the realty market and local sentiment.

Lawyer Bharat Bhushan Kathal criticized the government’s decision-making, calling it "unilateral" and lacking clear parameters. He pointed out that the revised rates implemented just six months ago have not shown substantial changes to justify yet another increase. Kathal also underscored infrastructure issues, noting Bhopal has just one sub-registrar, when it should ideally have four.

Government's Perspective and Next Steps

In response to CREDAI’s outcry, Bhopal MLA Bhagwandas Sabnani confirmed he would meet with the delegation to discuss their concerns and, if valid, bring them to senior officials' attention. Addressing the public’s concerns, Sabnani clarified, “This revision stems from market surveys. If properties valued at Rs 8,000 are being sold against guidelines of Rs 3,000, it’s essential to adjust these gradually to prevent revenue loss. Nevertheless, tackling issues like illegal land plots and fake registrations is of greater importance.”

Conclusion

As Bhopal’s real estate landscape faces yet another surge in guideline rates, stakeholders across the spectrum—developers, home buyers, and investors—await a balanced solution that can maintain revenue without destabilizing the market. Whether these grievances will reshape policy or see further rate hikes remains a pressing question.