PTI | Jun 30, 2016, 11.29 PM IST
New Delhi, June 29:- The Haryana government's decision to cut circle rate in
Gurgaon by 15 per cent would help boost property demand and revive sluggish
real estate market, according to property developers and consultants.
The state government yesterday decided to reduce collector rates of immovable property in Gurgaon by 15 per cent in view of decrease in property prices in the last few months.
"The Haryana government's
decision to cut circle rate for the first time ever by 15 per cent would act as
a catalyst for revival of the real estate market," property consultant
Cushman & Wakefield said.
This shows that government has
recognised the existence of a sluggish real estate market, which has seen
prices being cut by developers seeking to push their sales, it added.
"The cut in rate would
reduce the outgo on part of homebuyers and developers, and act as a catalyst
for more property purchases," C&W said.
Homebuyers would now face reduced
burden of stamp duty, registration charges and property taxes. Since the circle
rates cut applies to commercial properties too, developers would also be
benefited as stamp duty, fungible FSI and TDR are determined by circle rates,
the consultant said.
Sare Homes Managing Director
Vineet Relia said reduction in collector rate would help improve investor
sentiments in the real estate industry in Gurgaon.
"As we have seen, market
rates in Gurgaon have decreased over the years but the collector rates
continued to be high thereby leading to reduced interest from buyers. However,
with the rate cut, all stakeholders are expected to benefit," he added.
Yesterday, Gurgaon Deputy
Commissioner T L Satyaprakash had said the collector rates have been reduced on
the basis of rates prescribed recently for registration of property, market
rate and rates of plots and flats fixed by private builders in Gurgaon
district.
SOURCE: TOI Online – 30-06-2016
