Thane: The 12% hike in property tax for residential properties, 20% for non-residential properties and revised valuation for transfer fees, approved by the Thane general body, has drawn mixed reactions from the real estate industry.Jitendra Mehta, past president of Credai-MCHI, Thane, said the hike is unlikely to affect sales of new properties but could hit the rental market—both residential and commercial—as well as the resale segment.A civic official, based on cursory calculations, illustrated how the property tax on a 1,000-sq-ft flat purchased in 2026 in Balkum, Majiwada-Manpada, would rise from Rs 25,039 to Rs 28,305. The previous hike around eight years back had minimal impact on the property rates as the demand was comparatively higher, said industry players.Leader of House and Shiv Sena corporator Hanumant Jagdale, who is also a developer, said the increase though necessary is marginal and could be absorbed by citizens for the welfare of their city.“The biggest impact will be on those leasing out residential and commercial properties, as they will have little option but to pass on the additional cost to tenants. Though marginal, the increase could affect transaction volumes. The actual impact would be available only after corporation releases the final plan,” said a real estate agent.
