JAIPUR: The recent hike of 10% in circle rates for land and discontinuation of 2% rebate on stamp duty for purchase of flats costing less than Rs 50 lakh are likely to have an impact on home buyers, said representatives of real estate industry.
Speaking at the Confederation of Real Estate Developers’ Association of India (CREDAI) Rajasthan’s four-day property expo that began on Thursday, the industry body’s president Sanjay Gupta said that they would write to the state government to review the decision.
In addition, Gupta said developers would not pass on the extra cost to the buyer fully and share half of the additional cost. “We cannot put the whole burden of DLC rate hike. The builders will share some of the hike and pass on rest to the buyers,” Gupta added.
Housing prices have been on the rise following a steep increase of about 40% in construction costs including land and raw material prices. Gupta said while the cost of raw materials has declined from the peak levels, it is still higher.
Speaking on the outlook of the industry, Gupta said that the prices will rise 35-40% in the coming couple of years. “We expect an appreciation of up to 40% in property prices in the next two years because of rise in raw materials and land prices.”
Gupta pointed out Jagatpura, Vaishali Nagar and Agra Road have seen high growth after Covid pandemic. “Ajmer Road will take some more time because of the work on flyovers,” said Gupta.
