BackDemand for luxury housing improves in Delhi-NCR amid price fall, low interest rates
The circle rates in Delhi should be rationalised as market prices are 30-40% lower than the circle rates, say industry experts
PremiumNEW DELHI : The demand for luxury housing properties in the national capital has improved in the last six months on low prices and home loan interest rates, but there is a need to reduce stamp duty to give a further boost, according to industry experts.
Addressing a webinar on luxury housing market of Delhi-NCR, India Sotheby's International Realty CEO Amit Goyal said the circle rates in Delhi should be rationalised as market prices are 30-40% lower than the circle rates.
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Rahul Bhargava, Joint General Manager, HDFC Ltd, Anubhav Jain, CEO, Silverglades Group and Ravinder Singh Ahuja, CA, Founder RS Ahuja & Co also participated in the webinar.
“In the last 8-9 years, property prices have only come down. So, it’s high time that the circle rates are rationalised now. I wish there is a stamp duty cut, just like how it was done in Maharashtra and some other states. Even internationally, countries such as the UK and Malta did the same," he said in a statement.
Maharashtra and Karnataka governments have reduced the stamp duties on registration of properties.
Last month, the Delhi government had reduced the circle rates of residential, commercial and industrial properties by 20% for the next six months, but industry players made a case for further rationalisation.
Goyal said demand is much greater than supply in the market today, due to pent-up demand, low interest rates, an all-time high equity market.
"There is some amount of profit-booking happening from other asset classes, and money is flowing into real estate," he said.
Goyal said property prices have not appreciated over the last decade and rather have come down.
“Location has become important post lockdown because people are putting emphasis on upgrading lifestyles. They don’t want to travel too much for work and leisure," Jain said.
Bhargava said the loan disbursements have surpassed pre-COVID numbers.
"April-May disbursement was negligible, but now, we have surpassed our pre-COVID numbers, and we can see this trend will continue," he added.
Ahuja said the property prices and interest rates are at the lowest, which has created a very attractive and positive environment.
Goyal said the maximum demand is in ₹15-25 crore bracket and the top three markets are Sundar Nagar, Jorbagh and Shantiniketan in the national capital.
HDFC Home Loans and India Sotheby's International Realty are jointly organising Delhi Luxury Home Fair 2021, an online property show from March 6-21.
The show will exhibit luxury properties including ready-to-move-in homes and new developments across Delhi NCR in a price range of ₹5 crore to ₹150 crore.
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