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New Delhi: Attention homebuyers! Are you planning to buy properties in the national capital anytime soon? If your answer is yes, here’s an update for you. Buying property in Delhi is going to get expensive as the unified Municipal Corporation of Delhi on Wednesday decided to hike transfer duty by 1 per cent on properties priced above Rs 25 lakh across the city.
Giving details to news agency PTI, officials said after the hike, the transfer duty will be 4 per cent for men and 3 per cent for women. Notably, the decision was taken in a meeting on Tuesday where a proposal to increase the transfer duty by 1 per cent was moved.
The proposal was passed by the special officer of the Municipal Corporation of Delhi (MCD), who has been entrusted with the power to run the civic body till the new House is elected.
Prior to the meeting, the proposal was moved before the special officer in capacity of the standing committee to hike transfer duty on properties priced above Rs 25 lakh by 1 per cent. The proposal was then approved by the SO (special officer).
After the hike, transfer duty will be 4 per cent for men and 3 per cent for women, official sources told news agency PTI.
At present, the transfer duty on sale and purchase of property in the national capital is 3 per cent for men and 2 per cent for women.
Reacting to the development, real estate consultants said the move from the MCD to hike transfer duty by 1 per cent on properties priced above Rs 25 lakh across the city will put additional burden on buyers and adversely impact transactions in secondary property market.
Amit Goyal, CEO, India Sotheby’s International Realty, told PTI, “We are surprised by the decision of the unified MCD to increase transfer duty by 1 per cent on purchase of properties priced above Rs 25 lakh at this juncture. This move puts additional burden on the property buyers.”
Ashutosh Kashyap, Director, Advisory Services, Colliers India, told PTI that the proposed increase in the transfer charges, will increase the incidence of transaction cost on transfer cases.
“This move would imply an additional landed cost for secondary purchase. This move will marginally add to the lucrativeness of property purchases in the primary market from the developer, which might slightly sweeten the purchase in the primary market,” he said.
The homebuyers must note that the properties are divided into eight categories A, B, C, D, E, F, G and H depending on their area location and the Delhi government collects stamp duty on sale and purchase of properties.
Posh and upscale colonies fall in the category of A and B such as Golf Links, Vasant Vihar, Sunder Nagar and Jor Bagh. Middle income group neighbourhoods fall in the C and D category areas which include localities like Lajpat Nagar, Alaknanda, Bhogal, Amar Colony, among others.
Localities such as Geeta Colony, Anand Parbat, Seikh Sarai fall in E, F, G, H category areas. Transfer duty is collected in addition to the stamp duty. The hike will be applicable only on transfer duty and it will not impact buyers aiming to purchase properties priced below Rs 25 lakh.
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