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Thursday, March 04, 2021

Delhi: To boost real estate, circle rates cut 20%

“A reduction of 20% in the circle rate would have an impact close to reduction by 1% in the stamp duty or registration charges. The department was directed to do an exercise accordingly,” the government said in a statement.

By: Express News Service |
February 6, 2021 12:56:10 am
Housing sales, Housing sales value, Housing sales value top 7 cities, business news, indian expressThe decision was taken in a Cabinet meeting Friday.

In a bid to “boost” the economy hit by the Covid pandemic, the Delhi government Friday decided to reduce circle rates in the capital by 20% for residential, commercial, industrial and other properties across all categories for the next six months.

“In the interest of the people, the Delhi government has decided to reduce the circle rates by 20%. While we are slowly recovering from the economic contraction in the post-Covid era, it is the duty of our government to take all steps to further reduce the financial burden on the common man,” said Chief Minister Arvind Kejriwal.

The decision was taken in a Cabinet meeting Friday. “A reduction of 20% in the circle rate would have an impact close to reduction by 1% in the stamp duty or registration charges. The department was directed to do an exercise accordingly,” the government said in a statement.

Circle rate is the minimum rate below which the sale of a property cannot be registered. This value varies from area to area. Currently, properties in Delhi have been divided into eight categories from A to H, with category A housing the most elite and expensive areas in the city and category H being the lowest value area.

Generally, commercial properties tend to have higher circle rates than residential properties. Circle rates also vary depending on the type of property; so the registration value of apartments will be different for plots and independent houses even in the same area.

The current circle rates for categories A to H are Rs 7.74 lakh, Rs 2.46 lakh, Rs 1.6 lakh, Rs 1.28 lakh, Rs 70,080, Rs 56,640, Rs 46,200 and Rs 23,280 respectively.

“The economy by and large at the national level, in general, and the real estate sector, in particular, have witnessed huge slump due to the unprecedented Covid-19 pandemic. Lakhs of construction workers have lost their jobs. While the Kejriwal government has already provided direct monetary relief of Rs 10,000 for construction workers of Delhi, there was a need to revive the real estate sector and get the lost jobs back,” the government said.

In a statement, revenue minister Kailash Gahlot said, “This reduction in circle rates is a welcome step by our CM, and I hope this encourages more people to transact in real estate and avoid the stagnancy that would otherwise have occurred.”

Deputy CM Manish Sisodia tweeted: “A big decision by CM Arvind Kejriwal. Circle rates of residential/commercial/industrial properties in Delhi reduced by 20% across all categories for the next 6 months. This would be a big relief for people willing to buy property and a big boost up for the real estate sector.”

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