Breathing life into unconscious involves some sort of shaking and revival. The vibrations of an already sluggish real estate market is slowly dawning the investors while the Haryana government decides to breathe some life into it by not hiking the circle rates this time. The government is trying hard to push the market up by inviting the home buyers who have vanished from the scenario.

It has happened for the first time in six years that the circle rates, that is, the minimum value of a property at which the transaction of sale/purchase can take place has not been revised. The flat realty market is hoping to see few new home buyers encouraged to at least step out from their waiting zones and enter the market. Circle rates for buying property in Gurgaon during the year 2014 was raised by 10% and in the year 2013 it was 15%. This time, the government has realized the bad market scenario where the builders are stocked up with their inventory while there are no buyers. This is why the urban areas of Gurgaon where circle rates are already too high have not been hiked.

This is good news for the developers as well who are trying hard to sell their inventories with deep discounts and heavy bargains. A random SMS from a real estate firm on my mobile read: "Free office space worth Rs. 6 lakhs -10 lakhs with every booking. Project is built on 75 acre township." If such is the market situation, then it becomes necessary to introduce such marketing gimmicks. And had the Haryana government increased the circle rates, it would have further affected the prices and would have received a definite no from the buyer.

The situation as of now is pro buyer; otherwise the circle rates appreciate 10-15% every year. These rates are set by the government so that the property can be valued at its exact price while one goes for a stamp duty procedure. Higher circle rates would mean paying more stamp duty due to a higher registration amount required as the stamp duty charges.

The city, Gurgaon, derives its revenue from five zones namely, Gurgaon, Manesar, Sohna, Farukhnagar and Pataudi. The circle rates for agricultural land in some villages have been increased. There is no change in the stamp duty prices on land with area less than 1,000 sq yards. This much area will be continued to be treated as a residential land for stamp duty collection.

Tags:- Gove News