MAPUSA
The recent sharp increase in base land rates has drawn positive responses from real estate developers, who see the move as a boost for transparency and government revenue, despite some potential concerns about its broader impact on the property market.
The State government recently hiked base land rates in rapidly urbanizing areas like Salcete, Mormugao, and Tiswadi, with some locations in Taleigao seeing a jump of over 450 per cent. The recent increase follows a similar move two months ago when rates in Bardez and Pernem rose by around 130 per cent.
Developers argue this adjustment was overdue and will help align the official rates more closely with market values, promoting fairness in transactions. Jose Braganza, a member of Credai Goa and partner at B&F Realty in North Goa, said the increased base rate will help everyone involved by fostering transparency.
“This is the best thing that has ever happened to the real estate industry as well as the government. The government is going to earn a lot of revenue. It’s good even for clients,” Braganza stated. He noted that previous discrepancies between notified and market rates were significant and created inconsistencies in property valuations.
Parind Nachinolcar, a partner at Priority Constructions, echoed Braganza’s sentiment, arguing that the increase was “long overdue” and would not drastically inflate project costs. "It’s not a massive hike. It was something that was due for a very long time,” Nachinolcar explained. He pointed out that certain protections are still in place for Goan residents, as rates for specific classifications of land, such as mundkarial, have not changed.
The increase is expected to positively impact government revenue by standardising rates at sub-registrar offices. Nachinolcar highlighted how the adjustment could reduce irregularities and improve the uniformity of property reporting: “Since the base rates are standardised, the revenue collection of the government will be better, and erratic stating of rates won’t happen.”
Another real estate developer, speaking anonymously, lauded the government’s initiative, suggesting it could reduce unlawful practices in the real estate sector. “This is a very good initiative by the government because it curbs all the unlawful transactions which are happening. Builders like us, who do not go into these unlawful transactions, are safeguarded,” he said.
The developer suggested that the move would affect speculative investors coming from outside the State, who tend to under-report high-value transactions.
However, concerns linger over the potential emergence of a "shadow market," where property transactions might be under-reported to avoid high stamp duties.
Pranav Rane, a real estate consultant, warned of the risk of manipulation.
“Whenever there’s a sharp hike in official rates, there’s always a risk that people will look for ways to avoid paying the full duty,” he said, adding that a phased approach could allow for smoother market adjustment and reduce incentives for such practices.
For areas like Mopa, where the recent opening of a new airport has spurred rapid development, the rate hike could have additional implications.
Developers believe the increased rates will set higher benchmarks, possibly attracting high-end investors but also limiting affordable housing opportunities in the vicinity. Mopa’s fast-tracked growth could lead to a premium market positioning, pushing real estate prices beyond the reach of some local buyers.
With a mixed outlook, developers largely support the hike, seeing it as an important step toward a more regulated and transparent market. However, they suggest that addressing possible gaps, such as a phased rate increase approach, may prevent unintended consequences in Goa’s evolving real estate landscape.
