Real estate in the National Capital will now cost more as the Delhi government approved a 1% rise in transfer duty on properties priced above Rs 25 lakh throughout the city.
The Delhi government did not announce the rise in transfer duty until July 10, 2023, even though the Municipal Corporation of Delhi (MCD) agreed it in May 2022.
Currently, there is a 3% male and a 2% female transfer duty on the sale and purchase of real estate. In Delhi, the transfer duty would be increased to 4% for men and 3% for women after this increase.
The Municipal Corporation of Delhi shall increase the transfer duty on transfer of immovable properties from 2 percent to 3 percent in the case of female (including third gender) and from 3 percent to 4 percent in the case of male and other (i.e., any) with effect from the date of publication of this notification, according to a communication sent by the Delhi government’s Urban Development Department to the Revenue Department.
The decision will increase the overall cost of luxury residences, say real estate experts. Because even a slight increase has an impact on purchasers’ attitudes generally, properties will cost more. The city’s first-time homebuyers will be most impacted.
Since first-time buyers often purchase mid-segment homes and value every dollar, they will be the ones who will be most impacted by the increase in home prices across all housing sectors.
This decision is expected to have an impact there because the majority of sales are in the segment of real estate valued between Rs 3 crore and Rs 7 crore.