Buying house in Delhi to be substantially cheaper, know about this big update

NEW DELHI: If you are planning to buy a property in Delhi but the skyrocteing prices of land in the national capital were not letting you achieve your dream, here's a major update for you. The Delhi government, led by Arvind Kejriwal on Friday (Feb 5) reduced the circle rates of residential, commercial and industrial properties by 20 per cent for the next six months, making it substantially cheaper for people to invest in real estate sector in the national capital. 

Delhi Cabinet, which met under the chairmanship of Chief Minister Arvind Kejriwal, decided to reduce circle rates of properties in residential, commercial and industrial categories in the city by 20 percent for six months.

The properties in Delhi are categorised in eight classes from 'A' to 'H', with posh areas falling under 'A' while least developed areas in 'H' category, officials said. The existing circle rate of land in 'A' category areas -- Rs 7.74 lakh per square metre -- will go down to Rs 6.19 lakh per square metre, they said. In 'H' category, the circle rate will be reduced from Rs 23,280 to Rs 18,624 per square meter, they added. The minimum construction cost of commercial properties will also decrease from Rs 25,200 square metre to Rs 20,160 square metre in 'A' category areas, the officials said. In 'H' category areas, it will go down from Rs 3,960 per square metre to Rs 3.168 square metre, they added.

The minimum rate of built up flats (per square metre) in more than four-storeyed buildings will be reduced from Rs 87,840 to Rs 78,272.

Kejriwal expressed hope that the step will help in giving a boost to economy post the COVID-19 pandemic. "While we are slowly recovering from the economic contraction in the post-COVID era, it is the duty of our government to take all steps to further reduce the financial burden on the common man," he said.

The decision is expected to make it "substantially cheaper" for people to do property transactions, he said. It will also revive the real estate sector which has been hit severely by the coronavirus pandemic and create new jobs, he added. Revenue Minister Kailash Gahlot said the lowering of circle rates will encourage more people to transact in real estate and avoid the stagnanation in the sector.

A reduction of 20 percent in the circle rate would have an impact close to reduction by one percent in the stamp duty or registration charges, he said. The decision to cut down circle rates till September 30, 2021, will also boost the revenue collection of the government, officials said.

Against a target of Rs 5,300 crore from property registration in 2020-21, the actual collection has been Rs 1,830 crore by November 2020, they added. 

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