Bhopal (Madhya Pradesh): In most parts of the state capital, property market rates are much higher than the hike proposed in collector guideline rates. The Confederation of Real Estate Developers’ Associations of India (CREDAI) and elected representatives, including MP and MLAs, have voiced opposition to the proposed hike in the property rates.

Facing opposition from various quarters, the proposal for hiking the collector guideline rates at 340 locations in Bhopal have been put on hold. The revised collector guideline rate has majorly affected properties in Huzur and Kolar tehsils, though the proposed hike has been put on hold as for now.

In Kolar, the market rate of plots is currently around Rs 33,000 per square meter, while the cost of constructed areas is around Rs 55,000 per square meter and for commercial plots the rate is nearly Rs 1.10 lakh per square meter.

One being asked why CREDAI opposes the revised collector guideline rates, given that the market rate of property is already higher in most areas, the CREDAI’s Bhopal chapter president Manoj Meek explained that it is not only about market rates or collector guideline but its implications are much larger.

“The market rates are already high, and the proposed hike in the collector guideline rate will further increase property taxes, ultimately placing a financial burden on the people,” Meek elaborated. BJP MLA Bhagwandas Sabnani, a member of the district valuation committee, said that he had suggested the officials to keep registry rates low to increase the number of land sales and purchases deals, but they (officials) did not agree.

“If the registry rate is high, properties often move from one hand to another without getting registered, which incurs a loss in government revenue,” said the MLA.