The Haryana government took a significant step on Monday by declaring a 15% reduction in the circle rate within the city of Gurgaon. This strategic move aims to rejuvenate the real estate sector and attract buyers back into the market. Experts have noted that this decision indicates a recognition of the current decline in the real estate landscape.
Narasimha Jayakumar, Chief Business Officer at 99 acres, remarked, "The step will help in much improving the whole sentiments. It is expected that prices of both new and resale properties will down, mainly for ready to move in discovery and plots."
To elaborate, here are several key points highlighting how this reduction will impact both buyers and builders alike:
- With capital tax gains calculated based on circle rates, the overall cost of ownership is likely to decrease.
- Property registrations, which had seen a decline in Gurgaon, are expected to rise, thereby bringing much-needed revenue to the state government.
- The reduction in circle rates is anticipated to facilitate the sale of commercial land parcels. Notably, in March, out of 96 commercial properties auctioned by the Haryana Urban Development Authority, only 10 were sold due to high circle rates.
- Builders can expect to experience an uptick in sales figures as the market becomes more accessible to consumers.