Ggn agencies set to reduce circle rates again

Gurugram: In less than eight months, the Haryana government is set to reduce the circle rates in Gurugram, which will be implemented from January 1 next year.

With the property market in the city facing a slump, a reduction of three per cent is expected in old Gurugram area, officials here said on Wednesday.

However, in areas around NH-8, MG Road, and Golf Course Road the rates will be increased.

Officials hope that the reduction in circle rates not only increase the property sales but also will raise the cash coffers of the State Government.

With each area having different circle rates, the district administration plans to reduce the circle rates in the area where there can be maximum opportunity for sales of property.

In May this year, there was a reduction of 5 per cent in the circle rates.

In 2016-17, the administration reduced the circle rates by almost 15 per cent to boost realty sales in the city.

However, various factors like demonetisation and poor financial condition of the builders resulted in the sales not picking up completely.

Gurugram is one of the most preferred locations not only in the National Capital Region, but also in the country, for buying the residential and commercial properties.

There are claims that fall in property valuations have resulted in decrease in valuation of resale properties by as much as 70 per cent that is resulting in most of the seller not wanting to sell.

Scenario of new properties also does not seem to be that good with prices down to 30 percent.

Moreover, the shortage of labourers has further resulted in most of the projects in the city not being completed on time.