Punjab government hikes collector rate for property; cost to rise by 25 to 40 percent

October 25, 2025

The Punjab government has secretly increased the collector rate for property in cities. The increase has made property registration more expensive. This government decision will burden both ordinary citizens and property owners.

The Punjab government has increased the collector rate in all major cities without any notification. This year, the government has already increased the collector rate three times. This time, the government has increased the collector rate by 25 to 40 percent, making it clear that purchasing property has become more expensive for people.

The Deputy Commissioner Fixes the Collector Rate

The SDM is responsible for setting the collector rate for property. The SDM sets the rate and submits it to the Deputy Commissioner, who approves the collector rate. Property registration fees are determined based on the collector rate.

Rates Increased to Account for the Difference Between the Market Rate and the Collector Rate

The administration observed the market rate of the property while setting the rates. In areas where property market rates are high and collector rates are low, collector rates have been increased by up to 40 percent. Whereas, in areas where the difference between market and collector rates is small, rates have been increased by up to 10 percent. An Ashtam (eighth) of the collector rate and a fee of two percent are charged.

To register a property, buyers must pay Ashtam. Ashtam papers amounting to six percent of the total collector rate are required. If the buyer is a woman, they must pay four percent Ashtam. Additionally, a registration fee of two percent of the collector rate is charged. As the collector rate increases, the cost of registration increases.

Property is sold at the market rate, but registration is done at the collector rate.

There is a significant difference between the market rate and collector rate. When purchasing a plot, buyers pay the seller at the market rate, but when they go to register, they deposit Ashtam and fees at the collector rate. The difference between the market rate and collector rate is deposited by the seller in two ways.

This is how it will affect the public

Gurvinder Singh Lamba, president of the Punjab Colonizers and Property Dealers Association, explained in simple terms how the increase in collector rates will affect the public. He said that if a plot is worth ₹1 lakh at the collector rate, then ₹8,000 in registration fees are charged.