Bhopal: Protest Over 200% Hike Of Property Rates; Lock Circle Rate For 3 Years, Demands CREDAI

Bhopal (Madhya Pradesh): Confederation of Real Estate Developers' Associations of India (CREDAI) has demanded “lock-in” of property rate for three years. On Monday, property rate was increased up to 200 per cent in Bhopal. On Tuesday, a delegation led by Manoj Meek, president, CREDAI Bhopal chapter, called on MLA Bhagwandas Sabnani to register protest and submit memorandum.

According to CREDAI memorandum, the proposed excessive increase in circle rate in Bhopal will adversely affect the real estate industry, general public and the goals of Prime Minister's Housing for All mission. In the last decade, the circle rate in Bhopal increased manifold as compared to Indore, which has destabilised the property market.

The result of this is that investment in Bhopal has decreased and property prices have increased so much that buying a house has become a big challenge for lower and middle class people. Increasing the circle rate raises property tax, which is badly affecting the common man.

In addition, such policies can also have an adverse effect on state's revenue. The experience of Delhi, Uttar Pradesh and Haryana has proved that excessive circle rates reduce property transactions, which does not lead to expected increase in revenue.

CREDAI has demand that the state government should bring the guideline rate to the level of pre-Covid year and there should be no increase in the circle rate for next three years. They also said that an impartial assessment of status of investment, trade and revenue should be carried out during this period. This step will be in public interest and will contribute to development of the state, capital and revenue.