Buying a commercial property in Lucknow just got cheaper with government deciding to slash down prices of shops, offices, storage houses etc, by up to 20-60% depending on their location and area. The revised DM circle rates will be effective from December 1.
Looking at the decline in registration of commercial properties of up to 40%, which impacted stamp revenue collection, government decided to find reasons for this slump. Sub-registrars, sub divisional magistrate and tehsildars carried out a survey jointly and found that the formula to calculate value of commercial properties was redundant.
They found that registrations were costing a fortune to buyers hence they hesitated in investing in commercial projects. District magistrate Raj Shekhar said, “Government wants people to invest in commercial properties, hence it has asked to reduce rates. We have published proposed rates and asked for suggestions/objections from public till November 29. Final rates will be decided on November 30 and implemented by December 1.”
So far, value of commercial property was calculated by multiplying area by monthly rent per sqm (based on circle rate) and then by 300. It meant paying rent for 25 years at a time to own the property.
Additional Inspector General, Registrar, O P Singh said, standard rates have been assigned for shops/ offices in each locality which can be multiplied by the carpet area to determine its value. This is applicable to multi-storey buildings.
For independent shops/ offices, residential DM circle rate can be multiplied 1.5 times. The classification is also for properties on roads and interiors of colonies. For offices, rates have dropped by 40% and 30% for roads in colonies while for shops they have been reduced by up to 20% for roads and 30% for interiors.