The Haryana government has increased circle rates, a move that is unlikely to have an immediate effect on the price of the premium properties but might make registries dearer.
After the revision, the circle rates in sectors a move that is unlikely to have an immediate effect on the price of premium properties but might make registries dearer.
After the revision the circle rates in sectors adjoining the Southern Peripheral Road (SPR), Golf Course Road and Dwarka Expressway-areas where real estate has been a boom-have increased by upto 30%. The rates in commercial hubs have also seen a 10% rise.
Also referred to as collector’s rate, circle rate is the minimum value that state government set for the transfer of plot, built-up-houses, apartment or commercial property. Builders are not allowed to sell flats and homes below the rate set by the government.
The increase in circle rates, however will not affect the pricing of marquee properties as the market rates of all of them are much higher. For instance, the market prices of apartments in DLF projects, Camelia and Mangolia are Rs 55,000 per sq ft and Rs 45,000 per sq ft against the revised circle rate of Rs 27,500 sq ft.
Similarly, the market price of Crest, The Icon is around Rs 30,000 sq ft against the revised circle rate of Rs 13,200. The price of Park Place, Belair and other similar properties in the area are upwards of Rs 25,000 sq ft against the new circle rates of Rs 9,900 sq ft. In plotted areas homebuyers will feel the direct effect of the revision. If the value of a property, say Rs 1 crore the buyer has to pay Rs 7 lakh as stamp duty at the rate of 7%. In case of increase in circle rate, the buyers have to shell out Rs 1 lakh more.
Officials said, the rates had been revised after conducting a special review of immovable properties in the district. The rates had been fixed in keeping with the categories under which areas are embarked in the masterplan.
