Real estate experts welcomed Delhi Government initiative to cut circle rate by 20%. They expressed their opinions and said the reduced circle rates would translate into a lower real estate valuation.
The Delhi Government has announced that it is reducing the circle rate of properties by 20%. The announcement was made on Friday and this reduction is valid for 6 months. Delhi Government has taken this decision to boost the pandemic hit real estate sector. This new order is valid for all real estate categories including commercial, industrial, and residential properties across Delhi.
The decision was made during a Delhi government Cabinet meeting chaired by Arvind Kejriwal. However, Delhi Deputy Chief Minister Manish Sisodia announced the circle rate reduction on Twitter.
Tweet by Manish Sisodia– “The Circle rates of commercial, industrial, residential, properties in Delhi reduced by 20% across all categories for next 6 months. This relief will boost up the real estate sector and is a big relief for people willing to buy property in Delhi”.
What is Circle Rate?
Circle rate also known as “Floor price” and “Ready Reckoner Rate”. The circle rate set by the state government’s revenue department. It is the minimum value at which the sale of a flat, plot, commercial property, independent house can occur.
In other words, it is the minimum amount below which no property can be registered in government records. It varies and differs within the cities in the same state. The government may change circle rates from time to time depending on the supply, demand, and growth of the region.
Experts Opinion on Reduced Circle-
Real estate experts and developers welcomed Delhi Government initiative to cut circle rate by 20%. They expressed their opinions and said the reduced circle rates would translate into a lower real estate valuation. This will help the interested buyers who postponed their plans to buy real estate, because of high property prices in Delhi.
The high circle rates have increased the rates of property beyond the capacity of an affordable buyer. This cut in circle rates will somehow reduce the property price and help peoples willing to buy property in Delhi.
The real estate sector was badly hit by the pandemic and now high raw material cost is creating new problems. However, the real estate industry is reviving and decision of a lower circle rate will be a boost for the sector. It will make properties more affordable and now people can buy their dream property easily.