Realty stakeholders hail Delhi move to reduce circle rates

Real estate developers and industry stakeholders have welcomed the Delhi Government’s decision to cut circle rates by 20 per cent, a step that will bring down the exorbitant property prices in the Capital.

The decision, announced on February 5, would also lead to a spurt in the demand for real estate transactions that have been suppressed over the past few years. Realty players claimed that the decreased circle rates would result in a lower valuation of real estate and assist interested buyers, who would otherwise be left out because of the high property prices.

 The following is the detailed feedback from the industry:

“A reduction in circle rates not only will soften property and land prices in Delhi but also put pressure on other adjoining realty markets of NCR. This will bring in a new set of buyers to the market. Reduced prices may also lower the average age of property buyers in Delhi as properties will be within reach of the younger generation.”

Mani Rangrajan, Group COO, Housing.com, Makaan.com & Proptiger.com

“The decision by the Delhi Government comes at the right time when the industry is recovering from the tumultuous impact of the pandemic. The reduction in circle rates will make things more affordable and should increase the number of transactions. The decision of the Delhi government may also lead other states to take a similar step in near future as a booster to the real estate sector.”

Achal Raina, COO, Raheja Developers

“When the real estate is in the revival mode, decreasing the circle rates will have a positive impact on the market. The sector is already facing problems to contain the prices of units because of increasing raw material cost, and in this scenario, low circle rate would be beneficial for the residential sector. The secondary market will go in for more registries as stamp duty and registration charges will come down.”

Akshay Taneja, MD, TDI Infratech

“This indeed is a prudent step as it will give a boost to residential projects and commercial projects. As markets are reviving it will render push to transactions volumes. We have already seen the positive impact of the reduction of the stamp duty in Mumbai and this will help in faster recovery of Delhi real estate.”

Ankit Kansal, Founder & MD, 360 Realtors

“High premium puts a financial burden on developers leading to higher costs for the homebuyers. In the current economic scenario, the steps such as the one taken by Maharashtra or Delhi would ease the burden and soften the prices resulting in more sales. The latest decisions will be a boon for the sector’s overall development.”

Kapil Kapur, Director-Sales, Strategy & Business Development, Bullmen Realty