With the second wave of the covid-19 negatively impacting the economic recovery of the realty sector, realtors in Gurugram and Delhi have demanded an extension of the lower circle rate or property price. The real estate experts believe that the sector needs continued support from the government.
Delhi had reduced the circle rate in March for six months while Gurugram had raised the circle rate in April by 88%. As per the realty experts, the decision to hike the circle rate by 88% came at the wrong time, immediately before we were hit by the second wave of the covid-19, and the choice to hike the circle rate by Gurugram authorities may have been unfavorable for the realtors. Since the pandemic, Many states have either kept the circle rate unchanged or gone for the reduction like the Delhi government had reduced the circle rate by 20% to help the market in recovering while the Maharashtra government had also reduced stamp duty to inject momentum in the realty market. It has witnessed that, the circle rate was increased at that time when there was an expectation for some relaxation and real estate friendly measures from the government.
Earlier 3 months back, when the real estate sector was 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. But now the industry has demanded an extension of the lower circle rate or property price.
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 real estate developers has been demanding a reduction in circle rates to inculcate the confidence in the market. The sector is asking for the 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.