The Delhi government announced a 1 percent increase in transfer duty on properties priced above Rs 25 lakh throughout the city, purchasing real estate in the National Capital would now be more expensive.
The Municipal Corporation of Delhi (MCD) accepted the increase in transfer duty in May 2022, but the Delhi government didn’t issue a notification regarding it until July 10, 2023.
The transfer duty on the sale and purchase of real estate is currently set at 3% for men and 2% for women. After this hike, the transfer duty will be 4 percent for men and 3 percent for women in Delhi.
In reference to the notification dated July 10, the Delhi government’s Urban Development Department sent a communication to the Revenue Department stating that “with effect from the date of publication of this notification, the Municipal Corporation of Delhi shall increase the transfer duty on transfer of immovable properties from 2 percent to 3 percent in the case of female (including third gender) and from 3 percent to 4 percent in the case of male and other (i.e., any other entity) Authorities have instructed all sub-registrar offices in the GNCT of Delhi to make it as simple as possible to implement the aforementioned notification with immediate effect.
According to real estate specialists, the decision will raise the overall cost of luxury properties. Properties will cost more, as even a small increase affects the general attitude of buyers. The first-time home buyers in the city will be more affected.
All segments of residences will undoubtedly become more expensive now, and first-time purchasers will be the ones who will be most affected because they typically buy mid-segment residences and value every single penny.
The majority of sales are made in the segment of real estate priced between Rs 3 crore and Rs 7 crore, thus this move is likely to have an influence there.
Source- ET
