Hidden Costs of Buying Property in 2025

Stamp Duty, GST, and Maintenance Fees Explained

Buying a property—be it residential or commercial—is like unlocking a treasure chest, but with some unexpected costs waiting inside.
You’ve found the perfect space—a cozy apartment, a sprawling villa, or a prime commercial property in the heart of the city. The price seems right, the deal feels perfect, and you’re ready to celebrate. But hold on! The final bill often comes with hidden costs that can drain your wallet faster than you imagined. Whether you’re buying a home or an office space, let’s uncover the often-overlooked expenses so you can plan wisely and avoid unpleasant surprises.

1. Stamp Duty: A Universal Burden

Stamp duty isn’t just a residential property concern—it applies to commercial properties too. This government-imposed tax, typically between 5% and 10% of the property value, is one of the largest additional expenses buyers face. For commercial spaces, stamp duty can be even higher depending on the property’s location, size, and usage. For instance, purchasing a ₹5 crore retail space could mean shelling out ₹25–50 lakh in stamp duty alone.
Pro Tip: Always check your state’s stamp duty rates for both residential and commercial properties and factor them into your overall budget.

2. Registration Fees: Securing Legal Ownership

Registering your property—whether it’s a home, office, or retail unit—is mandatory. Registration fees typically amount to about 1% of the property’s value. While this might seem like a small percentage, for high-value commercial properties, it’s a hefty sum.
For Example: If you’re buying a ₹2 crore office space, you’ll need an additional ₹2 lakh for registration fees.

3. Maintenance and Upkeep: Long-Term Costs

• Residential Properties: Expect monthly maintenance charges for gated communities, apartments, or villas. These fees cover amenities like security, landscaping, and utilities.
• Commercial Properties: Maintenance charges for office spaces or retail units are often higher. These can include building management fees, utility costs, and even marketing levies in shopping complexes

Think Long-Term: For a prime commercial property, maintenance fees can run into lakhs annually. Always inquire about these charges before signing the dotted line.

4. GST: Taxing the Unfinished

If you’re buying an under-construction property—residential or commercial—you’ll be liable to pay Goods and Services Tax (GST).
• Residential Properties: GST ranges from 5% to 12%.
• Commercial Properties: Often subject to higher GST rates, especially if it’s for leasing or business operations.

For Example: Purchasing a ₹3 crore under-construction retail space could add ₹36 lakh in GST alone.

5. Other Sneaky Costs

• Legal Fees: Essential for title verification and documentation, legal fees can range from ₹10,000 to ₹1 lakh for high-value commercial transactions.
• Parking Costs: In commercial spaces, parking slots often come at a premium, adding lakhs to the overall expense.
• Furnishing & Fit-Outs: Office spaces often require significant investments in interiors, increasing your upfront costs.

Why Understanding Costs is Critical

Hidden expenses can turn a seemingly lucrative deal into a financial strain. Whether it’s a home to live in or a space to grow your business, understanding the full financial picture allows you to budget better, negotiate smarter, and avoid last-minute shocks.

Final Word

Buying property—whether residential or commercial—is a significant investment. But the true cost is often more than the price tag. By accounting for these hidden expenses, you can navigate the process like a pro and make informed decisions that align with your financial goals.
Ready to make a move in real estate? Let’s connect and discuss how to make your property journey smooth and stress-free!