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.

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