The Haryana government’s decision to cut circle rate in Gurgaon by 15 per cent would help boost property demand and revive sluggish real estate market, according to property developers and consultants.
“The Haryana government’s decision to cut circle rate for the first time ever by 15 per cent would act as a catalyst for revival of the real estate market,” property consultant Cushman & Wakefield said.
This shows that government has recognised the existence of a sluggish real estate market, which has seen prices being cut by developers seeking to push their sales, it added.
Home buyers would now face reduced burden of stamp duty, registration charges and property taxes. Since the circle rates cut applies to commercial properties too, developers would also be benefited as stamp duty, fungible FSI and TDR are determined by circle rates, the consultant said.
“As we have seen, market rates in Gurgaon have decreased over the years but the collector rates continued to be high thereby leading to reduced interest from buyers. However, with the rate cut, all stakeholders are expected to benefit,” he added.
Yesterday, Gurgaon Deputy Commissioner T L Satyaprakash had said the collector rates have been reduced on the basis of rates prescribed recently for registration of property, market rate and rates of plots and flats fixed by private builders in Gurgaon district.
Credits Business Standard