New Gurgaon circle rates won’t hurt much
The revised collector rates of land announced in Gurgaon on Tuesday will lead to a marginal increase in government duties levied on the sale of property, reports Sanjeev K Ahuja.india Updated: Jul 05, 2007 01:53 IST
The revised collector rates of land announced in Gurgaon on Tuesday will lead to a marginal increase in government duties levied on the sale of property. But the many crores the government is charging for licence, change of land use and external development from property developers are what will make the new residential units expensive for the average consumer.
This move by the Haryana administration has evoked a mixed response from individuals planning to buy plots or apartments here. Developers who plan to float their townships in new R-Zones (residential zones) earmarked in Master Plan 2021, however, said the 200-300 per cent hike would only marginally increase the cost.
Dr Sushil Khurana, a Sector 14 resident who plans to buy property in new R-Zone, said the new collector rate would definitely discourage buyers if developers shift the additional cost to them.
Developers, however, said the sharp hike would not increase the cost of land substantially because farmers in Gurgaon were already selling their lands in R-Zones to them at exorbitantly high prices and registration of these lands with the revenue department was being done either at revised rates or at higher rates in many villages.
Naveen Raheja of Raheja Developers said the stamp duty was a small element in the cost of the project. “The steep hike would add much to the actual cost of the project for developers,” he added.
For individuals who want to buy property in already populated private colonies like DLF City, Sushant Lok and Palam Vihar or in HUDA sectors, the collector rates have gone up by only 10-12 per cent as compared to last year’s rise of 15-30 per cent.
RS Rathee, the president of the DLF Qutub Enclave RWA, said individuals purchasing plots in DLF City Part I or II would have to pay just a few thousand rupees for a Rs 1-crore deal.
"For a big-sized 500 sq yard plot, the individual will have to pay just Rs 30,000 more than what he could have paid a few days ago, before the revision of the rates,” he said.
Rathee, however, said the state government must concentrate on providing basic civic infrastructure instead of hiking the collector rates exorbitantly.