By: Navneeta Srivastava |
Updated: June 29, 2016 3:45 PM
In a first ever move, the Haryana government on Monday decided to cut
circle rate by 15 per cent in Gurgaon to revive the real estate market and
bring homebuyers back into the market.
Experts have hailed the move and said with this move government has recognised that there is a slowdown in the real estate sector.
Narasimha Jayakumar, chief
business officer, 99acres dot com said, “this move will help in significantly
improving the overall sentiments. Prices of both new and resale properties are
expected to reduce, especially for ready-to-move-in inventory and plots.
With the help of experts we take
a look at 5 pointers on how the news is going to impact the home-buyers and the
developers community:
1. The total cost of ownership is
likely to come down as capital gains tax is calculated basis circle rates
2. The benefits of the slashed
circle rates would propel demand in the next quarter. The demand might further
increase with festive season around the corner
3. Property registration, which
had dropped significantly in Gurgaon, is also expected to witness an increment,
thus bringing in the much-needed revenue to the state government
4. The cut may also help sell the
land parcels meant for commercial properties. In March this year, out of 96
commercial properties auctioned by HUDA, only 10 properties were sold, majorly
due to high circle rates
5. Developers would see the light
of the day with sales number ticking
SOURCE: The Financial Express
Online – 29-06-2016
