Gurugram likely to slash property circle rate by 5% in FY18 to boost real estate business

Highlights:

1. Gurugram's district administration has suggested to reduce the city's property circle rate by 5% in FY18

2. With the latest announcement, the administration aims to boost sales in commercial, residential, agricultural, etc., properties in the city

With an aim to boost the real estate sector witnessing a slowdown after demonetisation, Gurugram's district administration has suggested to decrease property circle rate by 5% in the city, Zee Business channel reported. 

Gurugram (formerly known as Gurgaon) located in the National Capital Region (NCR) of India will witness a decrease in the property circle rate for the second consecutive year. 

To curb black money, corruption and terrorism, prime minister Narendra Modi in a surprise move announced scrapping of old currency notes of Rs 500 and Rs 1,000 on November 8 last year which resulted in cash crunch across India leading to a slowdown in property sales across the country.

ALSO READ: India abolishes larger banknotes in fight against graft, 'black money' 

To boost Gurugram's property sales market, its district administration this year has given suggestion of 5% decrease in the property circle rate in the city for the current financial year 2017-18 (FY18).

The district administration had decreased the city's property circle rate by 15% in 2016. So, in two years the property circle rate in Gurugram will fall by 20%. For the 2014 and 2015 year, the administration had not increased the property circle rate in the city. 

With this latest announcement of the Gurugram's district administration, there is hope that it is likely to increase the space of its Rs 5,000 crore real estate business which had witness a slowdown due to demonetisation. 

But the big question remains is will this rate cut be enough to boost the sales of commercial, residential,etc., properties in Gurugram?

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