New Delhi: In a move that will give boost to the Delhi property market, the Delhi government has decided to reduce the circle rate by 20% across all categories for next 6 months.
According to industry experts in post south Delhi areas like Maharani Bagh, Vasant Vihar, New Friends Colony and Panchsheel Park, the circle rate was higher than the market rate and the seller was unable to reduce the price as it will attract penalty from the IT department.
“A big decision by Hon CM ArvindKejriwal. Circle Rates of Residential/Commercial/Industrial Properties in Delhi reduced by 20% across all categories for next 6 months. This would be a big relief for people willing to buy property and a big boost up for Real estate sector,” Delhi’s Deputy CM Manish Sisodia tweeted on Friday.
Incorporated in 2013, Section 43CA of the IT Act states that developers or any other property sellers can be penalized for selling a property at prices lower than the Ready Reckoner rates, or circle rates or guidance value.
“Property prices in the secondary or resale market have fallen in the last few years in Delhi because of low demand. Delhi government has taken a right step to reduce the circle rate and bring it closer to prevailing market price.
Prospective homebyer will benefit as they will have to pay less for registration of properties. Maharashtra government 's decision to reduce stamp duty helped in higher registration of properties during September-January period of this fiscal year. We expect the demand to rise in the national capital as well,” said Anupam Rastogi, Co-founder & Head NRI Sales, Square Yards.
The FM's November 2020 provision to increase the difference between circle rates and agreement value from 10% to 20% (under Section 43CA) was an important one as it opened up possibilities for price reductions, according to property consultants.
Further reduction in circle rate will lead to reduction of price or the property and fence sitters might grab the opportunity.
“Market is gaining momentum, The reduction by 20% will lead to increase in sale in prime south Delhi areas,” said Rohit Chopra, founder of Southdelhiprime.com, a digital real estate advisory and transaction company.
As per ANAROCK Research, there are approx. 5.46 lakh unsold units across the top 7 cities priced up to Rs 1.5 crore, with another 49,500 units priced between Rs 1.5 crore to Rs2.5 crore.
Revenue collection on account of property registrations stood at Rs 284.59 crore in September 2020, higher than Rs 277.41 crore in September 2019, as per government records. Delhi’s figures for September also marked a steady increase from Rs 283.11 crore in August and Rs 262.86 crore in July this year, albeit less than Rs 375.67 crore and Rs 445.9 crore respectively in the corresponding months of 2019.
According to industry experts in post south Delhi areas like Maharani Bagh, Vasant Vihar, New Friends Colony and Panchsheel Park, the circle rate was higher than the market rate and the seller was unable to reduce the price as it will attract penalty from the IT department.
“A big decision by Hon CM ArvindKejriwal. Circle Rates of Residential/Commercial/Industrial Properties in Delhi reduced by 20% across all categories for next 6 months. This would be a big relief for people willing to buy property and a big boost up for Real estate sector,” Delhi’s Deputy CM Manish Sisodia tweeted on Friday.
Incorporated in 2013, Section 43CA of the IT Act states that developers or any other property sellers can be penalized for selling a property at prices lower than the Ready Reckoner rates, or circle rates or guidance value.
“Property prices in the secondary or resale market have fallen in the last few years in Delhi because of low demand. Delhi government has taken a right step to reduce the circle rate and bring it closer to prevailing market price.
Prospective homebyer will benefit as they will have to pay less for registration of properties. Maharashtra government 's decision to reduce stamp duty helped in higher registration of properties during September-January period of this fiscal year. We expect the demand to rise in the national capital as well,” said Anupam Rastogi, Co-founder & Head NRI Sales, Square Yards.
The FM's November 2020 provision to increase the difference between circle rates and agreement value from 10% to 20% (under Section 43CA) was an important one as it opened up possibilities for price reductions, according to property consultants.
Further reduction in circle rate will lead to reduction of price or the property and fence sitters might grab the opportunity.
“Market is gaining momentum, The reduction by 20% will lead to increase in sale in prime south Delhi areas,” said Rohit Chopra, founder of Southdelhiprime.com, a digital real estate advisory and transaction company.
As per ANAROCK Research, there are approx. 5.46 lakh unsold units across the top 7 cities priced up to Rs 1.5 crore, with another 49,500 units priced between Rs 1.5 crore to Rs2.5 crore.
Revenue collection on account of property registrations stood at Rs 284.59 crore in September 2020, higher than Rs 277.41 crore in September 2019, as per government records. Delhi’s figures for September also marked a steady increase from Rs 283.11 crore in August and Rs 262.86 crore in July this year, albeit less than Rs 375.67 crore and Rs 445.9 crore respectively in the corresponding months of 2019.
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