Buying property in Delhi becomes costlier as 1 percent hike in transfer duty comes into effect

For representational purpose

Buying property in the National Capital becomes costlier as the Delhi government has notified the 1 percent hike in transfer duty on properties priced above Rs 25 lakh across the city.

The hike in transfer duty was approved by the Municipal Corporation of Delhi (MCD) in May 2022, but a notification in this regard was issued by the Delhi government only on July 10, 2023.

Currently, the transfer duty on the sale and purchase of property in Delhi is 3 percent for men and 2 percent for women. After the hike, the transfer duty will be 4 percent for men and 3 percent for women.

The Urban Development Department of the Delhi government issued a communication to the revenue department referring to the notification dated July 10, saying, "… increase of transfer duty on transfer of immovable properties by the Municipal Corporation of Delhi from 2 percent to 3 percent in case of female (including third gender) and from 3 percent to 4 percent in case of male and other (i.e., any other entity) with effect from the date of publication of this notification. It has been directed by authorities to facilitate the implementation of the above-said notification in all offices of sub-registrars in the GNCT of Delhi with immediate effect.”

Real estate experts said that the move will increase the overall cost of properties.

Rohit Chopra of Southdelhiprime.com said that properties will get costlier as even a marginal hike impacts the overall sentiment of buyers. He said that it will have a greater impact on first-time buyers in the city.

“Properties will certainly get costlier now and will hit first-time buyers the most as they generally purchase mid-segment properties, and every single penny matters for them. The move is likely to impact the segment of properties in the price bracket of Rs 3 crore to Rs 7 crore as most of the sales are done in this segment,” he said.