The revised circle rates in twin cities of Delhi NCR
By Harvinder Sikka, MD, Sikka Group The recent proposal of sheer rebates in circle rates across categories is quite relaxing and also a welcome move by the Gautam Budh Nagar Administration. The rebate on circle rates has been brought to the...
By Harvinder Sikka, MD, Sikka Group
The recent proposal of sheer rebates in circle rates across categories is quite relaxing and also a welcome move by the Gautam Budh Nagar Administration. The rebate on circle rates has been brought to the table to boost the investment in realty sector of twin cities- Noida and Greater Noida. The decision to keep circle rates unchanged by the authority in both the cities is encouraging which will further lead to foster the demand and also clear up the inventories. The fluctuation in the surcharge rates and reduction in stamp duty and registration charges are the major influencing factors which will evolve the prevailing market situation. Without touching the circle rates, the administration has given relaxation on common facilities in group housing projects and reduction in rateable value in commercial properties and also reduced the cost of registering commercial and institutional properties. Prior, the surcharges on common facilities such as gymnasium, lift, power backup, swimming pool and community center was 15%, from which surcharges on lift and power back is eliminated and reduced on other three services from 3% to 2%. This will directly reduce the final cost of the property. The lift and power backup have been excluded from the circle rates calculation as they are the essential part of towering societies which is a favorable action towards commercialization. Adding to this, one more relief has been proposed by the administration by reducing the value of stamp duty ground floor from 20% to 15% and the value of lower ground floor, mezzanine and basement have been reduced by 13.33% and the value of properties on floors above third will remain intact. The decision will definitely enthrall the buyers and investors as now the more benefits can be availed through reducing surcharge on common facilities. The decision seems to be justified as it would attract more registries which would further lead to emancipate more unsold properties. Undoubtedly, the decision will turn out to be a big sigh of relief for the buyers as now buying property will be more accessible which would generate more pace in the realty sector. The steep rates in circle rates will boost the investment and will also create the balance in the market. Some unpleasing factors like unsold inventory, the unbalanced chain of demand and supply are the threat to the real estate sector, so for a good change, the transformation in the contemporary market situation is required. The revised circle rates will be applicable from 1st August 2018. This will also boost the sentiments of the buyers which is a complimentary change foreseen in the twin cities of NCR.