Buying property in Delhi is set to get expensive as the unified Municipal Corporation of Delhi has decided to hike transfer duty by 1 per cent on properties priced above ₹25 lakh across the city, official sources said on Wednesday.
Officials said after the hike, the transfer duty will be 4% for men and 3% for women. Currently, the transfer duty on sale and purchase of property in the national capital is 3% for men and 2% for women.
The decision was taken in a meeting on Tuesday where a proposal to increase the transfer duty by 1 per cent was moved.
The proposal was passed by the special officer of the Municipal Corporation of Delhi (MCD), who has been entrusted with the power to run the civic body till the new House is elected.
“A proposal was moved before the special officer in capacity of the standing committee to hike transfer duty on properties priced above ₹25 lakh by 1 per cent. The proposal was approved by the SO (special officer). After the hike, transfer duty will be 4 per cent for men and 3 per cent for women,” official sources told PTI.
According to a recent poll by Reuters, property prices in Mumbai and Delhi, including its surrounding National Capital Region, are expected to rise between 4% and 5% this year and next. Prices in Bengaluru and Chennai, are forecast to rise 5.5%-6.5% over the course of the next two years. Whereas overall India will witness an increase of 7.5%, the fastest growth in five years.
Reflecting the improved sentiment, the BSE index of real estate companies are up 21% in past one year, outperforming 15% rise in broader Sensex.
However, Mumbai city saw a 30% fall in property sale registrations of 11,744 units in April, compared to 16,726 units in March, contributing over ₹738 crore to the state revenue.