15% cut in Gurgaon Circle Rate to Propel Demand
- July 04, 2016
The sluggish real estate market is expected to witness a drastic change in the coming times as the circle rate has been cut by 15% by Haryana Government. The government of Haryana has always initiated schemes for the well-being of people as well as for industries. Now, with this cut in circle rate the government is proffering windfall to the consumers and developers.
But, what Exactly is Circle Rate?
For those who are not well aware about circle rate it is considered as the least value of property to sell which is defined by the local government. The associated stamp duty and registration charges are also included in this and it is applied on any type of property being a plot, an apartment, built-up house or even a Commercial property. The circle rate varies from place to place. Though, the market price is the actual price at which the transaction in real estate market takes place and is considered as the price which satisfies both the buyer and seller demand.
The recent 15% cut in circle rate in Gurgaon is a historical step of the Haryana Government considering the fact it hasn’t been done from the past couples of years. Even, after a span of 10 years, it is for the first time that the circle rate has been reduced by the government. And, cuts in real estate are rarely seen as well as steep hikes in real estate are usually seen in this. The last highest steep was done by Delhi Government of 20% back in 2012.
Gurgaon is considered as the major hub of real estate in NCR having plenty of MNCs and high end residential and commercial developments in its realm. It is host to all types of property option for the seekers but from the past few years the prices have slowed down the real estate market. In a witty way, the government has given an unlock key to move ahead in this game to the builders. The real estate experts state that by this strong move by government it will for sure propel demand in both new and Resale Properties and the market need more such types of steps to ensure the recovery of market.
After this step, the rate of residential registration are going to be down Rs. 500 per sq. ft. and the sectors 58-113 the earlier price was Rs. 3000 per sq. ft. which will now be 2,550 per sq. ft. as well as the rate of commercial registration which was earlier Rs.1 lakh will now be Rs. 85,000. According to reports, the major reason behind this initiative is the appalling condition of real estate industry and even being at a throw away price the buyers are not showing keep interest in owning it. And, behind this step the role of private builder is also major as they have actively appealed the Haryana Government for this step. So, if you are a home seeker or an investor looking for a good time to invest in a property; this is the time for you.