Delhi slashes circle rates of property by 20%

In a welcome move to bring down property rates in the national capital, the Delhi government has cut circle rates by 20 per cent to effectively check property price spiral in the metropolitan city. The new order covers all types of properties across the city and the move will boost property transactions in the market that has been subdued for the past few years. Real estate developers and industry stakeholders welcomed the government's move as the reduced circle rates would translate into lower valuation of real estates and help interested buyers, who were otherwise left out due to the high property prices in the capital. The decision comes at the right time when the industry is recovering from the impact of Covid-19 pandemic.

Chief operating officer of Raheja Developers, Achal Raina, informed that the reduction in circle rates will make properties more affordable and should increase the number of transactions. It may also encourage other states to take similar steps in near future as a booster to the real estate sector. Akshay Taneja, MD of TDI Infratech, said that realty sector is facing problems in containing the prices of units because of increasing raw material costs and in such a scenario, lower circle rates would be beneficial. The secondary market will also go in for more registries as stamp duty and registration charges will come down.