New circle rates to push vertical growth
According to real estate industry insiders, the move is expected to trigger a rush among investors to opt for top-floor flats since they will be paying less money than the normal for the area
Nov 04, 2014
Source : The Times of India
Multi-Storeyed Apartments


DEHRADUN: With revised circle rates coming into effect in the city soon, the top floors of multi-storey apartments are going to be easy on your pocket. This is so because the registry charges will be 25% less than the base price as calculated by the district administration. 

According to real estate industry insiders, the move is expected to trigger a rush among investors to opt for top-floor flats since they will be paying less money than the normal for the area — depending on its location and proximity with roads. 

"As per the circle rate charts, many places where real estate development is still going on, circle rates have been increased up to Rs 10,000 per square foot. Now the floor-wise circle rate charges reduce on higher floors. By doing this, the state government is pushing for vertical development, much like Delhi and Gurgaon," Anirudh Kumar, a real estate industry insider, told TOI.

Unlike Delhi, Noida and Ghaziabad, building skyscrapers has still not picked in a big way in the hill state. Barring a few in Sahastradhara and close to Mussoorie diversion roads, the multi-storey projects are still in the pipeline. 

The new circle rate for ground-floor flats will be 10% less than the base rate of the property while the top floor will have 25% less than the flat's base rate. The new rule will benefit flat owners who are opting for properties in areas where the circle rates have not gone up much. 

The builders, too, have welcomed the move of the district administration. Ritesh Dhiman, a Doon-based builder said, "The multi-storey projects will get more investors after the government reworked the circle rate on reducing pattern in Dehradun. Besides, the criteria to link the circle rate with the road width is an innovative move." 

Circle rates have shot up maximum up to Rs 10,000 per square metre in various locations, like Paltan Bazar and Sahastradhara. In colonies, like Malsi deer park area, the circle rates have gone up to Rs 18,000 per square metre. 

Giving the flipside of the new circle rate, real estate analyst Pradeep Tandon said, "By offering reduced circle rate, the government is not losing revenue since it is getting revenue on the same plot size first from the builder then from the flat owners. The government must now ensure that the circle rates should be untouched for next couple of years in Dehradun." 

The real estate industry insiders also sought changes in floor height restriction in multi-storey construction in the city. At present the floor height restriction is up to 21 metres while repeated demands have been made to increase this to 30 metres. "Increase in floor height will help in planning better super area ratio in township and big real estate projects. It will give major boost to the real estate business in all the projects," Tandon said.

Latest Realty News

Govt land details on official portal soon
Nov 03, 2014
HYDERABAD: The Hyderabad district administration will soon upload details of government land located in 16 mandals on its portal:
Govt to acquire over 30,000 acres for capital
Nov 03, 2014
GUNTUR: AP agriculture minister Prattipati Pulla Rao did not rule out the possibility of acquiring more than the proposed 30,000 acres land for the construction of capital city
Higher property prices swell ranks of Asia Pacific HNWIs
Nov 03, 2014
Asia Pacific will soon have more high-net-worth individuals (HNWIs) than North America with their investment in real estate being a key factor increasing their wealth
Milestone Capital Advisors exits Godrej Properties Kolkata project for Rs 200 crore
Nov 03, 2014
MUMBAI: Real estate private equity firm Milestone Capital Advisors has sold its entire stake in Godrej Properties residential project Godrej Prakriti in Kolkata for Rs 200 crore
Revised OAO Act’ to provide respite for Flat owners
Nov 03, 2014
Bhubaneswar: In a breather to the thousands of lakhs of flat / apartment owners in the State, Odisha Government has proposed amendment to the age-old Odisha Apartment Ownership [OAO] Act, 1982
Realty boom eating into other sectors?
Nov 03, 2014
Vijaywada: This year’s Deepavali was perhaps one of the dullest festivals for many traders mostly attributed to the boom in real estate sector
City’s realty still attracting buyers
Nov 03, 2014
VISAKHAPATNAM: Despite Cyclone Hudhud causing widespread destruction in the Port City, realtors said prices of plots have remained stable and sales have begun picking up
PE Investment in Realty Sector Jumps Two-fold to Rs 8,900 cr
Nov 03, 2014
BANGALORE:Private Equity funding into the sector saw a two-fold jump at Rs 8,900 crore till September this year
Realty check: Kolkata to have lowest housing demand
Nov 03, 2014
KOLKATA: The city is likely to witness a slow off-take of residential units despite the state government's efforts to give a push to the sector
Odisha cabinet approves land grab ordinance proposal
Nov 03, 2014
Bhubaneswar: The Odisha cabinet approved the proposal to issue an ordinance to prevent land grab in the state

Latest Realty News Of State

Realty Talk's