The Delhi cabinet-led by Chief Minister Arvind Kejriwal on Friday decided to reduce present circle rates related to residential/commercial/industrial properties in Delhi by flat 20 per cent across all categories of colonies and areas. The move will be effective from Sept 30, 2021.
The chief minister hoped that the step will help in giving a boost to the economy post the COVID-19 pandemic.
"While we are slowly recovering from the economic contraction in the post-COVID era, it is the duty of our government to take all steps to further reduce the financial burden on the common man," he said.
The decision is expected to make it "substantially cheaper" for people to do property transactions, revive the real estate sector which has been hit severely by the corona pandemic and create new jobs, he said.
The circle rates related to residential, commercial and industrial properties in Delhi have been reduced by flat 20 per cent across all categories of colonies and areas till September 30, 2021, a government statement said.
Deputy Chief Minister Manish Sisodia said the move will be a "big relief" for people willing to buy property and a major boost for real estate sector.
"A big decision by Hon CM @ArvindKejriwal. Circle Rates of Residential/Commercial/Industrial Properties in Delhi reduced by 20% across all categories for next 6 months. This would be a big relief for people willing to buy property and a big boost up for Real estate sector," Sisodia tweeted.
Revenue Minister Kailash Gahlot said the lowering of circle rates will encourage more people to transact in real estate and avoid the stagnation in the sector.
"We are facing tough times, and as an accountable government, we understand it is our duty to give maximum impetus to ensure the economy bounces back. This would require infrastructure, which is our biggest immovable asset, to pick pace."
"Reduction in circle rates is a welcome step by our CM, and I hope this encourages more people to transact in real estate and avoid the stagnancy that would otherwise have occurred," he said.
A reduction of 20 per cent in the circle rate would have an impact close to reduction by one per cent in the stamp duty or registration charges, he said.
(With inputs from PTI)