Steep hike in circle rates
Delhi government increases circle rates by 50% to 200% HOW IT WORKS OUT
Property prices in Delhi are all set to go through the roof following the government’s decision to increase circle rates by 50% to 200%.
The circle rates are charged on the basis of the categories prescribed by the municipal corporations for calculation of property tax under unit area method, wherein the city has been divided into eight categories (from A to H, where A stands for posh colonies). Circle rates are the minimum rates below which no property can be registered This ensures increase in the government's revenue in the form of stamp duty and reduces the black money component as the differen-
Circle rates are the minimum valuation of land and immovable properties in the city. They were first introduced in Delhi on July 18, 2007. They were further rationalised in February 2011 and November 2011.
There has been a 200% increase for Category A, a 50% hike for Category B and a 22% rise for Categories C to H. The circle rate in Category A areas will jump from R2.15 lakh per sq m to tial between market price and minimum price gets narrowed For an average person looking to invest in immovable property, the hike in circle rates shall translate into increased costs as he/she shall have to pay a bigger amount for stamp duty R6.45 lakh per sq m. This means that in Category A areas such as Golf Links, Aurangzeb Road, Amrita Shergill Marg, Vasant Vihar and Panchsheel Enclave, no one can buy land and immovable properties for less than R6.45 lakh per sq m.
Similarly, for Category B areas such as Greater Kailash I and RK Puram, the circle rate has been increased from R1,36,400 per sq m to R2,04,600 per sq m.