Himachal Pradesh government has increased registration fees for real estate projects by amending rules under the Real Estate (Regulation and Development) Act 2016. The Urban Development Department has issued a notification regarding the Himachal Pradesh Real Estate (Regulation and Development) Amendment Rules 2025, which will come into effect from the date of publication in the official gazette.
The amendment has been carried out under Section 84 of the Real Estate (Regulation and Development) Act 2016, with changes made to Rule-3 regarding RERA registration. New fee structures have been established with separate rates for rural and urban areas, marking a significant increase from previous rates.
Under the revised rules, promoters will now have to submit registration fees through demand draft or online payment at the time of project registration. The fee structure varies based on the type of development—residential, commercial, or mixed-use—and the location of the project.
For residential plot development, the registration fee has been increased from Rs 10 to Rs 30 per square meter in rural areas and Rs 40 per square meter in urban areas. Commercial plot development will now attract a registration fee of Rs 60 per square meter in rural areas, up from Rs 20, while urban areas will see charges of Rs 80 per square meter. Mixed-use plot projects, which combine residential and commercial purposes, will require a fee of Rs 45 per square meter in rural areas and Rs 60 per square meter in urban areas, increased from the earlier uniform rate of Rs 15 per square meter.
The fee structure for flat development projects follows a similar pattern. Residential flat projects will be charged Rs 30 per square meter of built-up area in rural regions and Rs 40 per square meter in urban areas, both increased from the previous Rs 10 per square meter. For commercial flat developments, the registration fee has been set at Rs 60 per square meter in rural areas and Rs 80 per square meter in urban areas, a substantial jump from the earlier Rs 20 per square meter. Mixed-use flat projects will attract charges of Rs 45 per square meter in rural areas and Rs 60 per square meter in urban areas, compared to the previous Rs 15 per square meter.
The state government has justified the fee increase by stating that the revised rates will strengthen the regulatory framework under RERA. Officials claim that higher registration fees will enable better monitoring and enforcement of real estate regulations, ultimately benefiting homebuyers by ensuring greater accountability from developers and promoters.
However, the steep increase in registration fees—in some cases tripling the previous rates—is likely to be passed on to end consumers. Real estate developers typically factor in registration and compliance costs into their project pricing, which means homebuyers and plot purchasers may face higher property prices as a result of this amendment.
The timing of the fee hike is also significant, coming at a time when the Himachal Pradesh government has been grappling with a severe financial crisis. The state has struggled to release funds for various welfare schemes, pay pensions on time, and clear contractor bills. The increased RERA registration fees appear to be one of several measures aimed at augmenting state revenue streams during this fiscally challenging period.
Real estate industry stakeholders are likely to express concerns about the impact of higher registration costs on project viability, particularly for smaller developers working on budget housing projects. The differential pricing between rural and urban areas may also influence where developers choose to launch new p
