20% cut in circle rate for property registrations in Delhi should be extended, say industry experts

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New Delhi: The Delhi government should extend the benefit of a 20% reduction in the circle rates beyond September this year in view of the second wave of the COVID-19 pandemic, a top official of India Sotheby’s International Realty said on Wednesday.

The company is part of Sotheby’s International Realty and it mainly into the brokerage of ultra-luxury and premium properties in major cities including the secondary real estate market of Lutyens and South Delhi.

India Sotheby’s International Realty Chief Executive Officer Amit Goyal also pointed out that the registrations of properties and will have been hampered in the national capital due to the lockdown.

He requested the state government to open up the process with proper COVID safety protocols.

On circle rate benefit, Goyal said that almost two months have been lost because of the severe second wave of the pandemic and lockdowns.

“Real estate transactions take anywhere from 4-6 months to close, and this benefit will be lost to Delhi citizens, if not extended,” he added.

In February this year, the Delhi government had announced that the circle rates related to residential, commercial, and industrial properties in Delhi will be reduced by a flat 20% across all categories of colonies and areas till September 30, 2021.

Sunil Tyagi, the Managing Partner of  Zeus Law, said: ” It is desirable and expected that the Delhi government extends the time for availing benefit of reduced circle rate till the pandemic situation continues.”

Tyagi said the stamp duty rates should also be cut to give relief to people during this pandemic.

On problems in registration of properties, Goyal said: “With the second wave of COVID now much more under control in Delhi,  our request to the Delhi government is that it should consider opening up property registrations for home buyers and sellers.”

The Haryana government has opened registrations last week despite a state lockdown, he added.

“Delhi government can issue safety guidelines to be followed, ensuring that buyers and sellers are given a fixed 15-minute slot, to avoid any crowding,” Goyal said.

Raising another concern, Goyal of Sotheby’s said the registration of wills should also be opened.

“Many of our HNI clients are drawing out wills for their family members. Some are in precarious health and registrations of wills are not something that can wait.

Even that should be made possible at these times of uncertainty,” he said.

Not having a properly registered will can lead to strife and unhappiness amongst family members, he said.