Real estate developers have requested the Delhi government to extend the 20 percent circular fee discount and reject the municipal company's proposal to raise the changeover price for purchasing property since it will likely have a detrimental impact on the real estate industry.
Brokerage firms and company executives noted that transaction costs including the goods and services tax (GST), stamp obligation, and registrations cost are already on the higher side and that any increase will affect the feelings of home buyers.
"We have contacted the state government and asked them to maintain the benefit of circular rate decrease since it had a clear and favourable impact on property transactions, especially in category A locations like Maharani Bagh, New Friends Colony, and
Hanuman Road, Vasant Vihar, and Park. If the current guidelines remain unchanged, we hope the momentum will continue, said Harsh Bansal, president of the Confederation of Indian Industry's real estate chapter in Delhi.
The Delhi government extended the 20 percent lower circular rates until June 30, 2022, in December 2021. Where necessary, we advise the department to consider adding subcategories within the A–H categories.
It will be exceedingly unproductive, according to experts, if circle rates are reinstated to their previous levels in class A regions when market rates are far lower than circle rates.
Despite the 20 percent rebate offered by the Delhi government and extended till June, the current costs in these colonies, particularly for big size plots, continue to be cheaper than the circular costs.
Goyal stated, "We believe it will have a detrimental influence on the real estate market if the allegations that MCD is preparing to hike the transfer charges are true.
Brokers noted that the fact that Delhi is typically a resale market may have an impact on high-value deals.
Experts have suggested upgrading colonies instead of implementing circular state raises for each colony and adding more classes like A+, B+, and C+.
"Reducing circle fees will benefit buyers and sellers alike. " We implore the government to make a well-balanced choice so that buyers and sellers who may be affected by several cost increases can do the same.
Developers saw a shift toward homes with expansive outdoor spaces and are a portion of an integrated township as a result of clientele who prioritise wellness and comfort.
An MCD official claims that after the proposal is approved, the switch duty for men will increase to 4% from its current level of 3% and for women to 3% from its current level of 2%.
The recorded sale value of a property is used to determine the switch obligation.