Govt may lower circle rates to boost realty in Dehra Dun

The Uttarakhand government is planning to lower circle rates for properties in Dehra Dun to boost the real estate sector, which has taken a beating in the wake of global recession and severe liquidity crunch.

The registration fee had escalated after the government revised the circle rates two years ago.

According to official estimates, there has been a 27-30 per cent fall in revenues of stamp duty and registries. In 2006-07, revenues stood at Rs 342 crore but last year it declined to Rs 231 crore.

Due to the slowdown, the property rates have fallen 10 per cent to 20 percent. Despite this, there are hardly any buyers.

Last year, the BC Khanduri government amended the land laws that restricted outsiders from buying more than 250 sqm of land. This limit was at 500 sqm in 2003 under the previous Congress government.

Though the government has implemented the master plan of Dehra Dun and lowered stamp duty rates by one per cent, this has not helped the realty sector much.

Property rates in Dehra Dun are hovering around Rs 5,000 to Rs 10,000 per sqm. However, prime land rates at places like the upmarket Rajpur Road are around Rs 9 crore per bhiga.