Is Circle Rate Hike to Hit Demand in Delhi?

The Delhi state government on recently  hiked the circle rates by up to 250% for sale and purchase of property, as this would curtail the flow of black money into the sector. 
 
According to realtors’ body CREDAI (Confederation of Real Estate Developers’ Association of India), property demand in the NCR (National Capital Region) might get affected for a short-term period.

India' s Leading property consultant Jones Lang LaSalle India MD ( Delhi NCR)  Mr. Nitish Bhasin said, ''The number of transactions would decline because of increase in circle rates."

Mr. Pradeep Jain, CREDAIi’s National Chairman  and Chairman of  Parsvnath Developers said, ''The increase in circle rates will not have an impact on prices as sale purchase transactions are happening at a much higher rate. The example of Delhi’s Defence Colony, a prime location, where the land prices are ruling at nearly Rs. 8 lakh per square metre (sq. m), while the circle rate has been fixed at Rs 2.15 lakh per sq m.""

Mr. Pankaj Bajaj, CREDAI, President (NCR) said. “Buyers will have to shell out more money on registration of properties because of increase in circle rates. There may be a little bit of impact on demand for a short term, as the move would restrict flow of black money in property transactions & buyers would have to arrange funds through bank loans."
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