Good news for people looking to buy new property in Delhi. Rates to go down as govt cuts circle rates
Property rates in Delhi soon will go down as the government has slashed the circle rate by 20% for all categories of property -- residential, commercial and personal. Now, people looking to buy a home in posh localities of Delhi like Vasant Kunj and Gold Links will have to pay over ₹1.5 lakh less on per square metre of land.
The decision was taken in a meeting chaired by the chief minister Arvind Kejriwal. Deputy chief minister Manish Sisodia announced the decision on Twitter and said this will be "a big boost up for Real estate sector." "I am sure this step will help in giving a boost to economy post Covid-19," CM Kejriwal also said on Twitter while retweeting Sisodia's tweet.
In Delhi, properties are classified in eight categories from 'A' to 'H', with 'A' class properties being the posh areas and the least developed areas fall into 'H' category. The existing rate of land in 'A' category is ₹7.74 lakh per square metre, After the revised circle rate this will go down to ₹6.19 lakh per square metre, as per PTI report. In 'H' category, the circle rate will be reduced from ₹23,280 to ₹18,624 per square meter.
The minimum construction cost of commercial properties will also decrease from ₹25,200 square metre to ₹20,160 square metre in 'A' category areas. In 'H' category areas, it will go down from ₹3,960 per square metre to ₹3.168 square metre, PTI reported.
The minimum rate of built-up flats (per square metre) in more than four-storeyed buildings will be reduced from ₹87,840 to ₹78,272.
The new circle rates will remain in effect till September 30 of this year. After the reduction, the government is expecting a boost in revenue collection as it tries to recover from the devastating effects of Covid-19 pandemic. Against a target of ₹5,300 crore from property registration in 2020-21, the actual collection has been ₹1,830 crore by November 2020, PTI reported citing officials.
(With agency inputs)