The Goa government has announced a new fee structure for land use conversions to capitalise on the state's booming real estate market. Effective June 18th, 2024, the Town and Country Planning (TCP) department will charge INR 1,000 per square metre for residential and commercial plots over 500 square metres, plus an INR 10,000 processing fee. Smaller plots face an INR 5,000 processing fee and INR 50 per square metre conversion fee. Industrial zones will incur INR 200-INR 500 per square metre, while institutional zones will be charged INR 150-INR 250 per square metre. This move aims to generate revenue but may impact development costs and project sizes in Goa.
The Goa government is looking to capitalise on the state's booming real estate market by introducing a new fee structure for land use conversions. This move, announced on June 18th, 2024, aims to generate additional revenue for the state but could potentially impact future development projects.
The Town and Country Planning (TCP) department has outlined the revised fee structure for land use conversions. The cost depends on the size and purpose of the land being converted. For residential and commercial plots exceeding 500 square metres, a conversion fee of INR 1,000 per square metre will be charged, along with a flat processing fee of INR 10,000.Plots under 500 square metres will incur a processing fee of INR 5,000 with an additional conversion fee of INR 50 per square metre. For example, converting a 1,000 square metre plot for residential use would now cost INR 1,000,000 (conversion fee) + INR 10,000 (processing fee) = INR 1,010,000. Conversion fees for industrial zones vary between INR 200 and INR 500 per square metre depending on the plot size, while institutional zones range from INR 150 to INR 250 per square metre.
These new fees are outlined in the recently introduced "Goa Town and Country Planning (Change of zone of land in the Regional Plan or the Outline Development Plan) Rules, 2024." This regulation was notified by the TCP department under the recently added Section 39A of the Goa Town and Country Planning Act, 1974. The introduction of these fees could add significant costs to development projects in Goa.
Developers will need to factor in these additional expenses when planning their projects, potentially leading to higher construction costs for consumers or a shift towards smaller development projects to avoid higher conversion fees. There's also a possibility that development in certain zones, like industrial areas with higher conversion costs, might be discouraged. While the new fee structure aims to generate revenue for the state, it's important to monitor its impact on the overall real estate market and development activity in Goa.
Striking a balance between revenue generation and fostering a healthy development environment will be crucial for the state's economic growth. The government will need to carefully assess how these new fees impact real estate activity and adjust the structure if necessary to avoid hindering development in the state.
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