Delhi’s Housing Market Shift: Analyzing the Impact of Transfer Duty Increase!
Buying a home in Delhi has become costlier after the Delhi government hiked the transfer duty on residential properties. The hike was announced in the Delhi Budget 2023-24, and it came into effect from April 1, 2023.
The transfer duty is a tax that is levied on the sale of a property. It is calculated as a percentage of the property’s value. The new transfer duty rates are as follows:
- For properties valued up to Rs. 50 lakh, the transfer duty is 2%.
- For properties valued between Rs. 50 lakh and Rs. 1 crore, the transfer duty is 3%.
- For properties valued between Rs. 1 crore and Rs. 2 crore, the transfer duty is 5%.
- For properties valued above Rs. 2 crore, the transfer duty is 7%.
The hike in transfer duty is expected to increase the cost of buying a home in Delhi by an average of Rs. 50,000 to Rs. 1 lakh. This will make it more difficult for people to afford to buy a home in the city.
The Delhi government has said that the hike in transfer duty is necessary to raise revenue for the city. However, some people have criticized the hike, saying that it will hurt the real estate market in the city.
Only time will tell how the hike in transfer duty will impact the real estate market in Delhi. However, it is clear that it will make buying a home in the city more expensive.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
