Realtors in Gurugram and Delhi Demanding Lower Circle Rates

In Delhi and Gurgaon, real estate players have asked for an extension of the diminished circle rates on floor prices. The second wave of the pandemic has cast a negative impact on the recovery of the real estate sector. According to experts, this industry needs further support of the government in terms of lower circle rates.

In the past, a reduction in these rates was announced in Delhi from 1st March, which would be applicable for the next six months. On the other hand, the rates were increased in Gurgaon from April. During the lockdown, revenue offices were shut for almost two months. Realtors, therefore, believe that the benefits should also be extended by two more months. High-end properties in Delhi and Gurgaon are presently under high demand. The timing for the administrators in Gurgaon to increase the circle rate has come under question in this light.

Property consultants and developers believe that the decision to increase the circle rate by 90% in Gurgaon would negatively impact the local real estate market. This would also slow down the recovery of the industry. The CEO of a reputed real estate group stated that the circle rates were increased in Gurgaon at a time when the players were expecting some respite and friendly measures for the real estate industry. Ever since the pandemic started, many states reduced the circle rates, or kept them unchanged. This ensured that the players could purchase properties at low prices. Besides, the strike of the second wave of the pandemic further focuses on the need to lower circle rates.

The CEO also said that it would be logical to reduce the circle rates in various localities of Gurgaon by 15% to 20%. Besides, the government needs to foster the boost of real estate by lowering the stamp duty as well.