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Rumours of hike in plot transfer fees create panic - Lahore_Real_Estate - 09-24-2010 12:28 PM
* Dealers curse luck after reports of a 50 percent increase in fees by LDA
Staff Report
LAHORE: Panic gripped the real estate markets of the city following rumours of a 50 percent increase in plots’ transfer fees by the Lahore Development Authority (LDA) from October 1. Citizens and property dealers condemned any such move saying that such a step would cause a further slump in the already declining real estate business.
However, to verify this information, when Daily Times contacted LDA spokesman Sohail Janjoa, he said that only urgent transfer fee to get a plot transferred within a week instead of a month, in case of complete documentations, was being fixed at 50 percent higher compared to ordinary fees from October. “Someone has spread misinformation on the basis of his misconception in the real estate market,” he said.
When asked about the amount of transfer fee, he said different fees were being charged in different housing societies or residential or commercial areas on the basis of the value of property. For instance in LDA Avenue, he said 10-marla plot’s first transfer fee was Rs 20,000; second transfer fee Rs 25,000 while one-kanal plot’s first transfer fee was Rs 40,000 and second Rs 50,000. When asked why these fees were high, he said the government encouraged only real buyers to purchase property for residential purposes.
Defense Housing Authority (DHA) Estate Agents Association President Mian Talat said that DHA did not come under the jurisdiction of the LDA, as it was looked after by the authority itself and no transfer fees were increased in DHA limits.
Estate House CEO Farooq Jamal said that generally the idea of any increase in the transfer would be highly condemnable because following five years of severe slump, the real estate business of the city was recovering up to 10 percent, however the flood factor had once again messed it all up.