As a step to reduce the financial burden on the common man and revive the real estate sector, the Delhi government had slashed circle rates for residential / commercial / industrial property and will registrations by 20%, in February this year. Circle rate is the minimum rate below which the sale of a property cannot be registered. This value varies from area to area. Delhi has been divided into 8 categories depending on how elite or not a particular area is.
Almost all industries have taken a big hit due to the ongoing Covid-19 pandemic and the real estate sector is no different, having witnessed a huge slump from the time the world came face to face with the novel Coronavirus. Hence, the decision to reduce the circle rates for properties by 20% in Delhi till September 30, 2021, was met with much joy by the developer fraternity and applauded by the public at large.
“The Delhi government should extend the benefit of 20 per cent reduction in the circle rates beyond September this year in view of the second wave of the COVID-19 pandemic,” said a top official of India Sotheby’s International Realty said on Wednesday. The company which is mainly into brokerage of ultra-luxury and premium properties in major cities including the secondary real estate market of Lutyens and South Delhi, is part of Sotheby’s International Realty.
India Sotheby’s International Realty CEO, Amit Goyal also pointed out that the registrations of properties will have been hampered in the national capital due to the lockdown. He requested the state government to open up the process with proper COVID safety protocols. On circle rate benefit, Goyal said, “Almost two months have been lost because of the severe second wave of the Covid-19 pandemic and the lockdowns that followed, which were essential to contain the virus. Real estate transactions take anywhere from 4-6 months to close, and this benefit will be lost to Delhi citizens, if not extended.”
Sunil Tyagi, the Managing Partner of Zeus Law said, “It is desirable and expected that the Delhi government extends the time for availing benefit of reduced circle rate till the pandemic situation continues.” Tyagi also added that the stamp duty rates should also be cut to give relief to people during these difficult times.
On problems in registration of properties, Goyal said: “With the second wave of COVID now under control in Delhi, our request to the Delhi government is that it should consider opening up property registrations for home buyers and sellers.”
Pointing to the fact that the Haryana government has opened registrations last week despite a state lockdown, he said, “Delhi government can issue safety guidelines to be followed, ensuring that buyers and sellers are given a fixed 15-minute slot, to avoid any crowding,” Goyal said.
Raising another concern, Goyal of Sotheby’s said, “The registration of Wills, Power of Attorneys, Gift Deeds, Relinquishment Deeds etc. should also be opened. Many of our HNI clients are drawing out wills for their family members. Some are in precarious health; hence, registrations of wills are not something that can wait. Not having a properly registered will, can lead to strife and unhappiness amongst family members. Even that should be made possible at these times of uncertainty,” he said.
(Source: Times of India)
