Jaipur-based builders are expecting a revival in real estate market after the state government has decided to slash 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 decision as 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, TNN reports.
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.
During the registration of a flat or plot in the city, the 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, an official said.
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.