Buying a dream home or a commercial space in the city may get cheaper as the district administration has proposed a 15% reduction in circle rates or collector rates across all segments for the financial year 2016-17.
The decision, according to official sources, has been taken in view of the sluggish real estate market.
Circle rate is the minimum value at which sale or transfer of a plot, built-up-house, apartment, commercial property or land takes place.
A committee headed by deputy commissioner TL Satyaprakash and comprising revenue department officials recommended reduction in the circle rates. Satyaprakash has sent the proposal to divisional commissioner D Suresh for final nod on Thursday.
The decision on the recommendation is likely to be taken in a week, said a senior district administration official.
The final nod could bring good news for those who have purchased properties in April and May as the revised rates will be applicable with effect from April 1.
There has been no change in circle rates for 2014-15 and 2015-16 due to the bleak real estate market scenario.
“The committee has recommended rationalisation of circles rates for Gurgaon, Sohna and Manesar to bring equality,” said the official.
The proposal has also mentioned indexing of circle rates of commercial areas from Ambience Mall to Sector 39.
“The rates on the stretch from Ambience Mall to Sector 39 are same. There is a need to change them,” said the officer.
The properties are registered in the revenue records on the basis of circle rates. A buyer pays stamp duty to the revenue department on the basis of the circle rates. The circle rates are for commercial and residential properties and agricultural land.
Usually, the circle rates are revised every financial year by an average of 10-15%. But the rates for financial year 2015-16 were levied at the rates prevalent during 2014-15.