R'than govt hikes land lease rate

R'than govt hikes land lease rate

Amidst a slowdown in realty sector, buying property has become an expensive affair in Jaipur. State government has increased District Lease Committee (DLC) rates by 15-30 per cent in the city with effect from October 1.

Experts say the move will not only escalate the property prices, but will also increase the price of land acquisition by state government for any new project.

“Any increase in DLC rates means extra burden on buyers in same proportion. Land acquisition by state and related projects will also become expensive affair,” said Atmaram Gupta, chairman ARG group.

The revision of DLC rates has taken place just before the festive season during which market sentiments generally remain high.

Due to proximity from Gurgaon and Delhi, around 40 per cent of investment during this time comes from NCR region. Revision of DLC rate may also hit the outside investment in the city.

“Most people prefer to buy a new home during Diwali festival. It is the time when people from Delhi and NCR region generally invest in Jaipur and realty players too make good profits,” Gupta said.

“But the revision of DLC rates just before the Diwali has shaken the sentiments of buyers,” said Gupta.

The government must have deferred the revision of DLC to the lean season in December and January where sale remains very low, Gupta added.

Experts said that the increase in DLC rates will be direct burden on the buyers who will have to pay money to builders and also at the time of registry of their property.

However, for the big investors the funding from banks will become easy as revision of DLC rate will escalate the actual liabilities of the builder.

“Both for builder and buyer, funding from banks will become easy because increase in DLC means increase in actual cost of the project. But the major burden will be directly shifted to the buyer,” said Satya Narayan, Chairman of SNG group.