NEW DELHI: Property rates in Delhi are set to go down as the AAP government on Friday slashed the circle rates for residential, commercial and industrial properties by 20 per cent for the next six months.
“In the interest of the people, the Delhi government has decided to reduce the circle rates by 20 per cent. 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 people,” Chief Minister Arvind Kejriwal said, after chairing the Cabinet meeting where proposal for reducing the circle rates of properties was approved.
It is learnt that a 20 per cent reduction in the circle rate would have an impact equivalent to 1 per cent reduction in the stamp duty or registration charges. Real estate developers and industry stakeholders welcomed the move.
“Reducing circle rates, even for only a limited period, is great news for the Delhi housing market because it helps to further bring down property prices, which are very high despite not having risen for quite a long time,” said Anuj Puri, chairman, Anarock Property Consultants.
“Market rates, which are invariably higher than circle rates, are nevertheless influenced by them as they act as a floor price for any property transaction.” The government has divided properties in the entire city into eight categories, ranging from Category A to Category H.
While most expensive residential areas come under Category A, the lowest-valued areas are classified as Category H.
“We understand it is our duty to give maximum impetus to ensure the economy bounces back. I hope this encourages more people to transact in real estate,” Revenue minister Kailash Gahlot told the media.