Circle rates for Delhi properties hiked
"The current circle rates are far lesser than the market prices... I do not think there will be any immediate impact due to this increase of circle rates. Property prices are always determined by the market forces. It is dependent on demand supply scenario," Jones Lang LaSalle (India) Chief Executive Officer (Operations) Santosh Kumar said.
He, however, said there may be some price hike in the long run due to this step.
"The best thing about raising the circle rates is that it will reduce the black money transactions. Now, the government will get more money and transparency in property dealings will increase," Kumar said.
Commenting on the development, National Real Estate Development Council (NARECO) President Navin M Raheja said the Delhi government has increased the circle rates to meet its revenue targets.
Asked about the impact on builders, he said: "We will not be affected as there is hardly any project in the primary market... The government is trying to bring the circle rate closer to the market price."
Raheja, however, said there will be some impact on the prices of properties traded in the secondary market.
Confederation of Real Estate Developers Association of India (CREDAI) NCR President Geetambar Anand said: "There will be slowdown in property transactions and prices will not increase as market is already down because of high interest rates and other factors."
The Delhi government today hiked the rates in