Circle raised interest rates to fight housing demand in Delhi: Property consultants

Increase in circle rates by up to 20 per cent in the national capital could further damp the cycle rate of up to 20% increase in the national capital may be a further blow to investor confidence, the impact of the real estate market, according to global real estate consultancy firm.

On Monday, the circle rate proposed by the Government in New Delhi - lowest valuation property must be registered - by up to 20 percent, in part aims to check black money in sale and purchase transactions.

CB Richard Ellis Southeast Asia Pte Ltd Chairman and Chief Physician Anshuman Magazine said: "The recycling rate of 20% across the board increase of this initiative will affect the decision to buy the home in the capital as the housing market has continued to slow down after the announcement the upcoming festival. before there could further dampen investor confidence. "

Circle rate has increased from Rs 6.45 lakh category to 7.74 lakh rupees per square meter of land and housing colonies as big mountain, defense colony, Gulmohar Park, peaceful coexistence enclave, Anandlok, green parks, golf courses and ho Haas.

Deputy Director of Jones Lang LaSalle India (research) ????? said the rate hike cycle will affect the secondary property market in Delhi, which is already facing a slowdown in demand for the decision.

"This is a good move, the circulation rate and the current market price line, which will curb black money in property and sales transactions bring transparency," Sharma said.

He said, however, the rate hike should not be a unified multi-analysis has been done before should raise interest rates.

When asked about the impact on demand, Sharma said: "Things have been slow in South Delhi will have more attenuation effects of the transaction pace will slow."

"Buyers will have to shell out more money, which means an increase in the cost of the apartment."

Sharma pointed out that developers have faced slowing demand and the ensuing liquidity crunch.

Land prices in the like Ann ???, Kalkaji, Munirka Vihar and Nehru Enclave Class B has been increased to 2,45,520 rupees as the current rate 2,04,600 rupees per square meter. en investor sentiment and affect housing market, according to global property consultants.

The Delhi government on Monday raised the circle rates- the minimum valuation at which properties have to be registered - by up to 20 per cent with an aim to check black money component in sale and purchase transactions.

CBRE South Asia Pvt Ltd Chairman and MD Anshuman Magazine said:. "This move of increasing circle rates by 20 per cent across the board will have an impact on home buying decisions in the capital With the housing market already going through a slowdown, this announcement coming just before the festive season is likely to further dampen the investor sentiment. "

Circle rate has been increased to Rs 7.74 lakh per square metre of land from Rs 6.45 lakh in category A housing colonies like Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas.

JLL India Associate Director (Research) Rohan Sharma said the decision to hike circle rates would affect demand in Delhi's secondary property market, which is already facing slowdown.

"It is a good move to bring circle rates in line with the current market price. This will curb black money in property market and bring transparency in sales transactions," Sharma said.

He said, however, the hike should not have been uniform and more ground analysis should have been done before raising the rates.

Asked about impact on demand, Sharma said: "Things are already slow in South Delhi It will have more dampening affect Pace of transaction will slow down..."

"Buyers will have to shell out more money which means increase in the cost of apartments".

Sharma noted that developers are already facing slowdown in demand and consequent liquidity crunch.

The land rates in Category B like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased to Rs 2,45,520 as against current rate of Rs 2,04,600 per sq meter.

SOURCE : WEB