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The Government of Delhi has recently declared a reduction in circle rates of properties by 20%. This move comes at a time when the real estate industry in the city is gaining momentum. As per information that the Delhi government received, a cabinet meeting, chaired by the Chief Minister was held on last Friday. It was here that the decision was taken. A proposal was given to reduce the circle rates of commercial, residential and industrial properties in the city. In the cabinet meeting, the Chief Minister approved the proposal.
A reduction in the circle rate of properties by 20% indicates that the stamp duty in the city would also undergo a reduction by around 1%. In an official statement, the Chief Minister of Delhi stated that directions have been provided to the department to carry out the necessary exercise.
The government of Delhi also announced that these new rates would be applicable till September 2021. Besides, it was stated that with reduced circle rates, the property transactions would become comparatively cheaper. The real estate industry has been undergoing a sluggish growth since the pandemic. This move from the Delhi government is likely to boost the industry.
The Cabinet Ministers at the meeting supported the decision of the government too. According to the Deputy CM, this was a big decision from the CM. During the next six months, investors in different sectors of the real estate industry would benefit while making the transactions. This would help the industry recover from the crisis significantly. Given that real estate contributes to the country’s GDP substantially, a boost in this sector would strengthen the overall economy.
The state’s revenue minister commented that the country has been going through tough times. Being an accountable government, they consider it to be their duty to provide optimal impetus. This would allow the economy to get back to its normal health, bouncing back from the crisis. Developments in the real estate sector would require proper infrastructure. This happens to be the biggest immovable asset of the country, and it needs to pick up pace. Reducing the circle rates would be a good move towards this development. This would also encourage the investors to make transactions and buy real estate. In the process, the industry would keep moving, rather than remaining stagnant.
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