Sunil Chadha
Shimla
In a move that is set to push up costs in the property sector, the Himachal Pradesh government has substantially revised upward the registration fees for real estate projects under the Real Estate (Regulation and Development) Act (RERA).
The amended rules, notified by the urban development department, have come into force with their publication in the state gazette, catching both developers and prospective buyers off guard.
The revision has been carried out under Section 84 of the Real Estate (Regulation and Development) Act, 2016, through the Himachal Pradesh Real Estate (Regulation and Development) Amendment Rules, 2025. Under the new framework, separate and significantly higher fee slabs have been prescribed for rural and urban areas, replacing the earlier uniform and lower rates.
Steep hike for plot development projects
As per the amended Rule 3, promoters will now be required to deposit the revised registration fee either through demand draft or online mode at the time of project registration.
For residential plot development, the fee in rural areas has been tripled from Rs 10 to Rs 30 per square metre, while in urban areas it has been fixed at Rs 40 per square metre.
Commercial plot development has seen an even sharper escalation. The registration fee has been increased from Rs 20 to Rs 60 per square metre in rural areas and pegged at Rs 80 per square metre for urban locations. Mixed-use projects involving both residential and commercial plots will now attract 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 rates for residential and commercial flats
The government has also reworked registration charges for flat-based developments, calculated on the basis of built-up area. For residential flat projects, the fee has been raised threefold in rural areas —from Rs 10 to Rs 30 per square metre — while urban projects will now pay Rs 40 per square metre.
Commercial flat developments will attract 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 not been spared either, with charges increased from Rs 15 to Rs 45 per square metre in rural areas and fixed at Rs 60 per square metre in urban locations.
Government cites stronger regulation, developers wary
Defending the move, the state government said the revised fee structure would help strengthen the regulatory mechanism under RERA, improve monitoring of projects and enhance consumer protection. Officials argue that the enhanced resources will enable the authority to function more effectively and ensure greater transparency in the real estate sector.
However, industry stakeholders fear that the steep hike could increase project costs, particularly in urban centres, with a possible trickle-down impact on homebuyers. Developers are also concerned that higher upfront registration charges may discourage smaller players, especially in rural housing projects.
With real estate already grappling with rising construction costs, the timing and scale of the hike have sparked fresh debate on its likely impact on housing affordability in the hill state.
