Circle rates may not raise property prices
The revised circle rates in the Capital might not have much of an impact on the real estate prices, despite making property registration a costly affair.delhi Updated: Jun 15, 2010 00:14 IST
The revised circle rates in the Capital might not have much of an impact on the real estate prices, despite making property registration a costly affair.
Experts believe actual property price is driven simply by demand and supply; circle rates are merely an indicator of property prices, they said.
“Though buyers will have to pay more for registration of the property, it will not impact the actual market rates,” said Deepak Singhal, director of Property Tantra, a real state company based in East Delhi.
Delhi revenue minister Rajkumar Chauhan said the new circle rates will minimise the difference between the average market rate and the rate at which properties are generally registered. “It is rather beneficial for the middle-class and salaried people who raise loans from banks to buy property. It will reduce the circulation of black money in the property market,” he said.
“Most properties are sold in middle- and lower middle-class localities where circle rates have been revised between 30 and 50 per cent,” Chauhan said.
According to the revised rates, circle rates in commercial areas would now be three times that of residential parts and two-and-a-half times in industrial areas.
Chauhan said the government has also tried to weed out any scope of corruption in the registration of real estate assets.
“Now the property will be registered at residential rates, thus eliminating any possibility of money changing hands,” said Chauhan.