In the National Capital, the Delhi government announced an increase of 1 percent in transfer duty on properties priced above Rs 25 lakh.
Although the Municipal Corporation of Delhi (MCD) accepted the increase in transfer duty in May 2022, the Delhi government did not issue a notification until July 10, 2023.
After this hike, the transfer duty on the sale and purchase of real estate in Delhi will be 4 percent for men and 3 percent for women.
With regards to the July 10th notification, the Delhi government’s Urban Development Department notified the Revenue Department that transfer duty on the transfer of immovable properties should be raised for females (including third gender) from 2 percent to 3 percent, and for males and other entities from 3 percent to 4 percent. Consequently, all sub-registrar offices in GNCT of Delhi have been instructed to begin implementing this notification as quickly as possible.
In the city, first-time home buyers will be especially affected by the decision, as even a small increase will impact the general attitude of buyers.
First-time buyers will undoubtedly be affected the most because they typically purchase mid-segment homes and value every dollar.
This move is likely to have an effect on the segment of real estate priced between Rs 3 crore and Rs 7 crore, where most sales take place.