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Circle rate waiver of 20% not enough to boost property sales in Delhi; stamp duty cut need of the hour, say experts 

After Maharashtra government decided to offer a seven-month stamp duty waiver, 19,600 properties were registered in MMR in December 2020; 10,442 in January 2021 when stamp duty was at the rate of 3% and 17,091 until March 31, 2021. Delhi has not witnessed such a trend

The Delhi government on February 5 decided to slash circle rates for residential, commercial and industrial properties in Delhi by 20 percent flat until September 30, 2021.

The Delhi government on February 5 decided to slash circle rates for residential, commercial and industrial properties in Delhi by 20 percent flat until September 30, 2021.

The Delhi government on February 5 decided to reduce the circle rates for residential, commercial and industrial property in the city by 20 percent flat until September 30, 2021. In the backdrop of the deadline ending today and reports that the government may extend the waiver until December 31, here’s a look at whether the benefit actually led to an increase in property transactions, especially in Grade A micro-markets, where there is a circle rate and market rate mismatch.

The aim of reducing circle rates in the Capital, much like in the case of the Maharashtra government, was to boost real estate sales after the adverse impact of the first wave of COVID-19. The difference was that the Maharashtra government on August 26, 2020, decided to temporarily reduce stamp duty on housing units from 5% to 2% percent until December 31, 2020, to boost the stagnant real estate market, hit doubly hard by COVID-19. The stamp duty from January 1, 2021, until March 31, 2021, was to be 3 percent.

According to data available on the website of the department of registration and stamps, 19,600 properties were registered in the Mumbai Metropolitan Region in December 2020; the number touched 10,442 in January when stamp duty was 3%; In February, 10,198 properties were registered and in the following month the number of transactions rose to 17,091.

In contrast, the Delhi numbers appear to be disappointing, even if one were to bear in mind the fact that the number of housing units across categories in Mumbai is far greater than that in Delhi.