Himachal Pradesh Increases Property Registration Fees Under RERA
Significant Fee Increases for Real Estate Projects
Sunil Chadha
Shimla
In a significant move that is likely to raise expenses in the real estate sector, the Himachal Pradesh government has announced a substantial increase in registration fees for real estate projects governed by the Real Estate (Regulation and Development) Act (RERA).
The updated regulations, issued by the urban development department, have taken effect following their publication in the state gazette, surprising both developers and potential buyers.
The adjustments were made under Section 84 of the Real Estate (Regulation and Development) Act, 2016, through the Himachal Pradesh Real Estate (Regulation and Development) Amendment Rules, 2025. The new guidelines introduce distinct and significantly higher fee structures for rural and urban areas, replacing the previous uniform and lower rates.
Increased Fees for Plot Development
According to the revised Rule 3, promoters must now pay the updated registration fee via demand draft or online payment at the time of project registration.
For residential plot development, the fee in rural regions has surged from Rs 10 to Rs 30 per square metre, while urban areas will see a fee set at Rs 40 per square metre.
Commercial plot development fees have experienced an even more dramatic rise, increasing from Rs 20 to Rs 60 per square metre in rural areas and set at Rs 80 per square metre for urban locations. Mixed-use projects that include both residential and commercial plots will now incur a fee of Rs 45 per square metre in rural areas, up from Rs 15, and Rs 60 per square metre in urban regions.
Revised Charges for Flats
The government has also adjusted registration fees for flat developments, which are calculated based on built-up area. For residential flat projects, the fee has tripled in rural areas—from Rs 10 to Rs 30 per square metre—while urban projects will now incur a fee of Rs 40 per square metre.
Commercial flat developments will now face a registration fee of Rs 60 per square metre in rural areas, up from Rs 20, and Rs 80 per square metre in urban areas. Mixed-use flat projects have also seen increases, with charges rising from Rs 15 to Rs 45 per square metre in rural areas and fixed at Rs 60 per square metre in urban locations.
Government's Justification and Industry Concerns
In defense of the changes, the state government stated that the revised fee structure aims to bolster the regulatory framework under RERA, enhance project monitoring, and improve consumer protection. Officials believe that the additional resources will allow the authority to operate more efficiently and ensure increased transparency in the real estate market.
However, industry representatives express concerns that the steep increases could elevate project costs, particularly in urban areas, potentially affecting homebuyers. Developers worry that the higher initial registration fees may deter smaller players, especially in rural housing initiatives.
With the real estate sector already facing rising construction costs, the timing and extent of these fee hikes have ignited discussions regarding their potential impact on housing affordability in the mountainous state.