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.
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.com said, “the 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 homebuyer and the developer 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