Real estate professionals have expressed their approval of the initiative by the Delhi Government to reduce circle rates by 20%. These experts articulated their views, emphasizing that this reduction in circle rates is likely to result in a decrease in real estate valuation, thus facilitating better opportunities for potential buyers.
On the official front, the Delhi Government made it clear that the circle rates for properties would be cut by 20%. This significant announcement was released on a Friday and will be in effect for a span of six months. The underlying reason for this decision stems from the government's desire to invigorate the real estate sector, which has suffered severe setbacks due to the pandemic. Importantly, this new directive affects all categories of real estate, which includes commercial, industrial, and residential properties within Delhi.
The decision emerged from a Cabinet meeting presided over by the Chief Minister, Arvind Kejriwal. Following this, Delhi's Deputy Chief Minister, Manish Sisodia, took to Twitter to convey the news regarding the circle rate reduction.
In a tweet, Manish Sisodia stated, "The Circle rates of commercial, industrial, residential properties in Delhi reduced by 20% across all categories for the next 6 months. This relief will boost the real estate sector and is a significant relief for people willing to buy property in Delhi."
Understanding Circle Rate
Circle rate, commonly referred to as "Floor price" or "Ready Reckoner Rate," is determined by the state government's revenue department. It represents the minimum price at which the sale of any flat, plot, commercial property, or independent house can transpire. Moreover, it serves as the baseline value below which no property can be officially registered in government records. This rate is subject to variability, differing not only across cities within the same state but also subject to adjustments based on regional supply, demand, and growth.
Expert Insights on the Reduced Circle Rate
Reactions from real estate experts and developers have been overwhelmingly positive regarding the Delhi Government's move to slash circle rates by 20%. They have indicated that this adjustment will lead to lower property valuations, ultimately assisting buyers who had previously postponed their real estate acquisitions due to notably high prices in Delhi.
High circle rates have historically inflated property costs, putting homeownership out of reach for many who are seeking affordable housing solutions. Thus, the reduction will serve to alleviate the burden on these prospective buyers in their pursuit of properties in Delhi.
The pandemic has wreaked havoc on the real estate sector, compounding the situation with rising raw material costs presenting additional challenges. Nevertheless, signs of recovery in the real estate market are beginning to surface, and the introduction of lower circle rates will likely invigorate this crucial sector. Buyers will find properties becoming more accessible, paving the way for them to realize their dream of homeownership.