The Delhi government will be extending the rebate of 20 percent on circle rate of land and immovable property for another six months. This decision to continue with reduced rates, say real estate experts, will help both home buyers and sellers.
But any changes in circle rates should only be announced as a part of a comprehensive citywide rationalisation and colony recategorisation exercise, they say.
“It is being extended. The file is being sent to the chief minister and the Lieutenant Governor,” Delhi’s revenue minister Kailash Gahlot confirmed to Moneycontrol.
The Delhi government on December 31, 2021 extended the 20 percent rebate on circle rate for land and immovable property till June 30, 2022 to help Delhi’s COVID-hit real estate sector. In September 2021, it was extended up to December 31, 2021. The extension of 20 percent relaxation in circle rate was to help Delhi’s COVID-hit real estate sector.
The circle rates of properties in Delhi fall into eight categories of municipal areas–designated A to H. The circle rates or the official rates of land and immovable property were last revised in 2014. In June 2021, the revenue department formed four working groups to ascertain circle rate revision in residential, commercial, and industrial areas.
Real estate experts have welcomed the government’s decision to extend the rebate of 20 percent on circle rate of land and immovable property for another six months.
“We appreciate Delhi Government’s decision to extend the reduction in circle rates. The reduction in circle rates by 20% last year, has had a definite and positive impact on property transactions, especially in Category A localities like Maharani Bagh, New Friends Colony, Panchsheel Park, Vasant Vihar and Hanuman Road. Many properties which were in the market for a long time, but were unable to find a buyer, got sold because of the circle rate rebate,” said Amit Goyal, CEO, India Sotheby’s International Realty.
The decision to continue with reduced rates will help both home buyers and sellers. “Any changes in circle rates should only be announced as a part of a comprehensive citywide rationalisation and colony recategorisation exercise. This is essential to bring harmony between circle rates and actual marjet prices. We recommend that the department looks at creating subcategories within the A-H categories, where needed,” he added.