Several high-value property transactions in Delhi put on hold

Several high-value property transactions in Delhi have been put on hold as the state government shut down the revenue office amid rising cases of Covid-19.

The disruptions have led to a backlog in registrations of property, succession, and power of attorney.

“The government should build a mechanism as many elderly people are not able to register their will. Since a registered will is more authentic and acceptable, the testator prefers registering his will,” said Sunil Tyagi, managing partner of Zeus Law Associates. “Unregistered wills get more into litigation than registered wills. With property being the biggest asset, people want to devolve a clear title through a registered will in the event of the death of the owner.”

In 2021 too, revenue offices were closed for almost two months in Delhi due to lockdown.

“We understand that the government’s priority is health and safety. However, sub-registrar offices should remain open as it is an essential service during the pandemic for affected families, especially the elderly and high-risk individuals,” said Amit Goyal, CEO, India Sotheby’s International Realty.

Legal firms said that several families with elderly and high-risk members are not able to register their documents.

“We would appeal to the Delhi government to include registration of such documents in the permitted list of essential services,” Goyal said.

A property expert said that the closure of the revenue office also affects those looking to avail the reduced circle rate benefit announced by the Delhi government.

The Delhi government has extended the 20% lower circle rates until June 30, 2022.

The reduced circle rate was earlier applicable from March to September 30 and was further extended to December 31.

“Delhi has witnessed several high-value transactions since the reduction in circle rate was announced. But closure at regular intervals affects the momentum. We hope the current disruption is only temporary,” said Pradeep Prajapati, head of luxury residential services at IQI India.

High-value properties in south Delhi have always been in demand, but in some regions, due to the high difference between the circle rate and market rate, transactions were stuck.

Developers said that with customers focusing on wellness and convenience, there is a shift toward properties that have large outdoor spaces and are preferably part of an integrated township.

At the same time, South Delhi and Lutyens’ Bungalow Zone registered the highest number of property registrations in three years through a Covid-19-ravaged 2020–21, with uber-rich investors buying assets in areas where demand usually outruns supply.