Gurugram may cut circle rates again
With property sales in Gurugram not picking up, the district administration is mulling over a reduction in circle rates. If it does go through with this plan of reducing property circle rates, this will be the second consecutive year in which this has been done.
In fiscal 2016-17, the district administration reduced the circle rates by almost 15 per cent to boost realty sales. However, various factors like demonetisation and poor financial condition of builders resulted in sales not really picking up.
Gurugram is one of the most preferred locations not only in the National Capital Region (NCR) but also in the country for buying the residential and commercial properties. The reduction in circle rates by the authorities is a step not only towards increasing the property sales but also to increase the cash coffers of the Haryana Government.
With each area in the city having different circle rates, the district administration plans to reduce the circle rates in the area where there can be maximum opportunity for sales of property.
“It will be too premature for us to confirm that there will be reduction in circle rates. However, there is a plan to reduce circle rates in certain areas in the city. A team has been formed that will prepare the report of realty sales in various areas of the city and the revenue which the state government is getting out of it. This report will be then shared with the Deputy Commissioner before we go ahead with the reduction in the circle rates in the city,” said Gurugram Divisional Commissioner D Suresh.
“Realty forms an important part of revenue generation in the city. With the State and the Central Government implementing various measures towards bringing transparent reforms in the sector, the State Government now wants that the property sales in the city is being carried out in an honest way. The Government had reduced the circle rates in the city in 201617 for increase in property sales in the city, “added Suresh.
Even as the city is witnessing a lot of construction in residential and commercial areas, property analysts in the city have highlighted that how higher rates is resulting in lower sales of the properties.