To revive real estate, Gurgaon proposes to slash circle rates
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To revive real estate, Gurgaon proposes to slash circle rates

If approved, it will be the first time in recent history when Gurgaon will see the circle rates slipping downwards. Lower rates are bound to boost sentiments of buyers.

To revive real estate, Gurgaon proposes to slash circle rates

In a bid to provide relief to the beaten down real estate market, the Gurgaon administration proposed to slash circle rates of properties by 15 per cent this year. The proposal was made to the state government by a committee comprising revenue department officials headed by Deputy Commissioner TL Satyaprakash.

Satyaprakash has sent the proposal to divisional commissioner D Suresh for his final nod.

If the Haryana government approves the proposal, it will be the first time in recent history when Gurgaon will see the circle rates slipping downwards. In the last two financial years (2014-15 and 2015-16) circle rates in the city were left changed. But, this too, failed to boost the sentiments of the buyers.

The proposal came as relief to the residents and property consultants. If implemented, the lower circular rates will encourage people to come forward to purchase houses at a lower prices. Also, it will become easy to access loan from banks for the low-cost homes.

In 2015, due to ongoing recession in the property market, the prices of houses in Gurgaon declined by 25 per cent. But, then too, demand for property did not increase. According to people involved in real estate sales, this could be a positive move.

Speaking to City Spidey, Ram Vilas Sharma, a property consultant from Sector 46, said, “In the last three years, the market slowed down simply because there is no stability in the property rates. The reduction in the circle rates would benefit the buyers as well as the property dealers.”

With the fall in circle rates developers can expect boom in the real estate sector. JP Gupta, a board member of the National Capital Chapter of Confederation of Real Estate Developers Association of India (CREDAI), said that the whole market had stalled because the circle rates are on the higher side.

As per a report of Assocham, a 25 per cent drop in the prices of flats was recorded when it came to the sale of one-, two- and three-bedroom flats. Dipankar Gupta, a financier and resident of Sector 15 said, “The government has thought of a good plan. It will not only result in lesser margins but more sales, but also higher turnover in terms of profit.”

Sujata Capoor, a tenant in Vatika City, said “We have been planning to buy a property on Sohna Road. But when it comes to registration charges and other formalities, we end up nowhere. At the time of purchasing the property, we are required to pay stamp duty to the revenue department on the basis of circle rates. Now, if the circle rates are reduced, our dream house will fit into our budget.”

Another resident of Sector 47, Sumant Bhalla, was equally ecstatic over the proposal as he foresees increase in the development and residential population in the sector.

“Till now, the population in our sector is quite thin as compared to the other sectors. These vacant plots within the sector are resulting in mushrooming of unwanted jhuggis which at times become dens for petty criminals.”