Builders in the city are expecting a revival in real estate market after the state government on Monday decided to slash the the district level committee (DLC) rates by 10%.
Nearly five years after, the DLC rates have been reduced in Jaipur, which has been one of the hottest real estate markets among tier-II cities. The real estate industry has welcomed the decision as it will realign market rates with circle rates.
After the reduction, residential DLC rate in Adarsh Nagar, which was Rs 28,890 sq metre, will come down to Rs 26,001. DLC rate in Chitrakoot (residential) will fall to Rs 19621. The residential rate in C-Scheme would see a reduction of almost Rs 4,104 at the current rate of Rs 41,040.
In 2017, the state government increased 15% DLC rates in Chitrakoot, Durgapura, Gopalpura, Hawa Sadak among other areas in the city.
The decision to reduce DLC rates by 10% would provide relief to developers and buyers as the market is already facing significant cost escalation in the recent past. An official informed , DLC rate is the minimum value of property at which the sale of a plot, apartment, house or land takes place. It is directly related to the applicable stamp duty on the property, which has an impact on property prices. The registration of property also takes place on the basis of DLC rates.
“During the registration of a flat or plot in the city, the state government charges stamp duty based on DLC rates in the area. The 10% reduction in DLC rates will bring down transaction cost to purchase flats as money will be charged on lesser land rates,” added official
Developers in the city believe the reduction would boost the market and many genuine buyers would come forward to purchase properties. The effect on demand can be witnessed in the next quarter.
“With the reduction in land prices, end users as well as investors will become active again that will help revive the industry.” said Ravi Prakash Jain , a real estate advisor.
Thousand of flats and plots are lying vacant in Jaipur as demand dried up due to demonetisation and GST. “The demand for property has come to a standstill. With reduced DLC rates, prices will also come down and become realistic which would attract buyers.” said Vimal Gupta , a property dealer.