NCR realty: Spike in circle rates of Gurugram can impact buyer’s demand trend

At a time when the real estate sector is coming back and adapting the new normal factors, and several starts have reduced stamp duty and circle rates to offer better housing affordability, Gurgaon administration has decided to increase the circle rates by upto 90%.  The city realtors called out to the administrators to look into the matter and roll back the increase as it can have cascading effects on the city’s growing sales, which have been better than the neighbouring cities in NCR.

The real estate market has been in the revival mode as buyers have been thronging to get hold of a real estate asset. According to JLL Q1 Residential Market Update – Q1 2021 report, the Delhi NCR market has performed much better than all other major cities in terms of new launches, as the region witnessed a jump of 111% in Q1 2021 over Q4 2020. Compared with Q1 2020, NCR added approximately 6,750 units in Q1 2021, a Y-o-Y increase of 9%; out of the total, approximately 52% of the new supply was in the affordable segment, according to ANAROCK’s Q1 2021 data. The number of launches in Gurugram is better, which points to the demand for property in the city.

Mr Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development, says,” For quite some time, the developer community has been demanding a reduction in circle rates to infuse confidence in the market. The sector needs support from the government, and buyers are also looking at ease of buying. On its part, the real estate sector has kept the prices subdued for years despite rising raw material cost; buyers constantly looking for some respite in prices, which is only possible through a reduction in circle rates and stamp duty. We are looking forward to some favorable steps that could help sustain the demand.”

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