Buying house in Delhi get costlier, transfer duty on property over Rs 25 lakh hiked by 1%

Delhi's urban development department has approved a proposal by the Delhi Municipal Corporation to raise the transfer duty on property purchases exceeding 25 lakhs. The decision has caused a surge in property prices in the capital, making home buying more expensive for residents. The proposal was initially sent last year, suggesting an increase in transfer duties, and after receiving approval on Monday, the new rates have been implemented.

Following the consolidation of the Delhi Municipal Corporation, Special Officer Ashvni Kumar gave his consent to the proposal to increase transfer duties. The implementation required the approval of the Delhi government, so the proposal was forwarded to the urban development department. After receiving the green light, an official notification was issued, outlining the revised transfer duty rates.

Move to ensure parity and equity 

Previously, female and transgender individuals had to pay a 2 per cent transfer duty on property purchases, while men were subject to a 3 per cent rate. However, under the revised rates, an additional 1 per cent transfer duty will be levied, making it 3 per cent for females and transgender individuals and 4 per cent for males. This move aims to ensure parity and equity in property transactions.

Concerns among prospective buyers

The increase in transfer duties has sparked concerns among prospective homebuyers, who fear the additional financial burden. Industry experts believe that the rise in property prices could deter individuals from purchasing homes in the capital.They argue that such a measure might discourage investment and slow down the growth of the real estate market.

The Delhi Municipal Corporation defends the increase, stating that it will contribute to revenue generation and fund various development projects in the city. They assert that the additional revenue will be utilised for improving infrastructure, healthcare facilities, and other essential services for the residents.

Homebuyers on lookout for alternative options

Homebuyers are now considering alternative options, such as exploring properties in nearby regions or opting for rental accommodations instead. The real estate industry in Delhi may experience a temporary slowdown as buyers reassess their investment plans in light of the increased transfer duties.

The impact of the revised transfer duties will be closely monitored by the government and industry stakeholders to assess their effectiveness and implications. Meanwhile, the Delhi Municipal Corporation remains optimistic about the long-term benefits that the additional revenue will bring to the development and welfare of the city.