News & Views on Indian Real Estate

Tuesday, May 13, 2008

NCR realty to see a hike in floor rates by 30%

There’s news for all those people who are eyeing NCR for property investment. The NCR board is likely to hike the minimum floor area rates (circle rates) for property transactions in and around the Capital by 20-30%.A circle rate is the floor price at which property transactions are registered, and quoting a lower price is not allowed. Therefore, higher circle rates mean more transparent transactions. In addition, home loan seekers would get bigger loans from banks as the property price reflected in the document would be higher, closer to the market value. The circle rates in NCR are far below market rates.
Even after the proposed hike, rates would be far lower than market rates. The board feels circle rates should be revised every year to reflect the actual value of land. In many cases, there is a huge difference between the actual market price and floor price set by state governments. There is much room to revise rates in NCR as well. States need to follow a calibrated approach in revising rates. Rate hikes from time-to-time do not pinch the buyer and enrich state coffers.

Vikas Bamotra said...

Rentals in the National Capital region are expected to stabilize in the next quarter as supply is set to increase Gurgaon and Noida. According to commercial real estate services firm CB Richard Ellis, rentals are expected to be stable in the next quarter as the supply is set to increase significantly in Gurgaon and Noida. However, no significant change in supply is expected in Delhi except in Jasola where an additional 500,000 sq ft is expected to be added in the second quarter.

Anonymous said...

yes that is correct because in the last 6 months all the rates are very high in the floor levels.

Andy property said...

Rents depend upon the floors. Lower floor will be having the high rent as we go up floor by floor the rent value will decrease.

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