In a move that comes as a major breather for homebuyers in the national capital, the Chief Minister Arvind Kejriwal government in Delhi has decided to cur circle rates by a flat 20% across categories, including residential, commercial and industrial buildings. The reduced rates, which will be applicable on all areas in the national capital, will come into effect from September 30, 2021.
The decision was taken in a cabinet meeting of the union territory government on February 5, 2021.
Lauding the move on micro-blogging site Twitter, Delhi Deputy Chief Minister Manish Sisodia said: “A big decision by Hon CM @ArvindKejriwal. Circle Rates of residential/commercial/industrial properties in Delhi reduced by 20% across all categories for next six months. This would be a big relief for people willing to buy property and a big boost up for Real estate sector.”
Real estate developers have also welcomed the move by the Delhi government.
“The decision by the Delhi government comes at the right time when the industry is recovering from the tumultuous impact of the pandemic. The reduction in circle rates will make things more affordable and should increase the number of transactions. The decision of the Delhi government may also lead other states to take a similar step in near future as a booster to the real estate industry,” says Achal Raina, COO, Raheja Developers.
Commenting on the Delhi government move, Akshay Taneja, MD, TDI Infratech, said that the secondary housing market in the capital city will benefit from this decision.
“When real estate is in the revival mode, decreasing the circle rates will have a positive impact on the market. The sector is already facing problems to contain the prices of units because of increasing raw material cost, and in this scenario low circle rate would be beneficial for the residential sector. The secondary market will go in for more registries as stamp duty and registration charges will come down,” Taneja said.
“The circle rates have a direct bearing on the actual market rates, a reduction in circle rates not only will soften property and land prices in Delhi but also put pressure on other adjoining realty markets of the NCR. This will bring in a new set of buyers to the market. Reduced prices may also lower the average age of property buyers in Delhi as properties will be within reach of younger generation,” says Mani Rangrajan, group COO, Housing.com, Makaan.com & Proptiger.com.
What are circle rates?
Circle rates are the government determined rates of property/land below which a property can’t be registered in the government records. The stamp duty and registration charges on property registration are calculated keeping in view the circle rates.
See also: All you need to know about circle rate
The move by the Delhi government will be particular beneficial for Delhi buyers in view of the announcement made in the Union Budget 2021 with regard to the safe harbor limit on circle rates. While presenting the Budget for 2021-2022 on February 1, 2021, Finance Minister Nirmala Sitharaman also announced an extension of the safe harbor limit on property transactions.
That way, buyers purchasing a property below the circle rate by up to 20 per cent will not have to pay additional tax.
See also: Budget 2021: Extension of ‘safe harbour’ limit to benefit buyers, inventory-hit builders
***
Delhi government raises circle rate of agricultural land
The Delhi government has decided to raise the circle rate of agricultural land from Rs 53 lakhs per acre to anything between Rs 2.25 crores and Rs 5 crores per acre
The AAP government in Delhi, on December 18, 2019, said that it had decided to raise the circle rate of agricultural land from the current Rs 53 lakhs per acre to Rs 2.25 crores-Rs 5 crores per acre. The decision was taken in a cabinet meeting that was chaired by chief minister Arvind Kejriwal. “The cabinet decision, to revise the circle rate of agricultural land, will be sent to the lieutenant governor for his approval. I think there will be no problem and he will extend his approval,” Kejriwal said after the cabinet meeting.
See also: A guide to paying property tax in Delhi
It was also decided that commercial electricity connections at chambers of lawyers will be converted to domestic, allowing them to avail benefits like free electricity to up to 200 units of consumption a month. The government’s decision on converting connections at chambers of lawyers, will cost the exchequer Rs 5.93 crores in subsidy. The cabinet also accepted the recommendations of the Rakesh Khanna committee, of spending a corpus of Rs 50 crores for the welfare of lawyers. The lawyers, who are voters of Delhi, can now avail of Rs 5 lakhs family mediclaim, Rs 10 lakhs life insurance and e-libraries and creches in all court premises in the city, he added.
With Inputs from PTI
Related Posts
NDMC passes resolution withdrawing hike in property tax rates.
Demonetisation: 3 Delhi civic bodies fetch Rs 7 crores in property tax.
CM Kejriwal to holds meetings with farmers, on Land Pooling Policy.
Boost for affordable housing as 95 Delhi villages declared as ‘development areas’.
Delhi: I-T raids on farm house, land developers unearth Rs 215 crores black money.
Centre to file reply in SC justifying provision protecting sealing.
Comments