The Haryana government has increased circle rates, 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 seen a boom – have increased by up to 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 governments set for the transfer of a plot, built-up house, apartment or a 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 Magnolia are Rs 55,000 per sqft and Rs 45,000 per sqft against the revised circle rate of Rs 27,500 per sqft.
Similarly, the market price of Crest, The Icon, is around Rs 30,000 per sqft against the revised circle rate of Rs 13,200. The prices of Park Place, Belair and other similar properties in the area are upwards of Rs 25,000 per sqft against the new circle rate of Rs 9,900 per sqft.
In plotted areas, homebuyers will feel the direct effect of the revision. If the value of a property, say, is Rs 1 crore, the buyer now has to pay Rs 7 lakh as stamp duty at the rate of 7%. In case of a 10% increase in circle rate, the buyer will have to shell out Rs 1 lakh more.
Property dealers objected to the revision in circle rates. “In some sectors, the circle rate for floors was revised from Rs 5,500 per sqft to Rs 6,500. The circle rate and stamp duty are too high for the realty market, especially after the downslide during the pandemic,” said Devender Kataria, a broker.
Last year too, circle rates in sectors adjoining the SPR, Golf Course Road and Dwarka Expressway were increased by up to 25%. The rates in commercial sectors, however, remained unchanged.
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 earmarked in the master plan, they added.
Deputy commissioner Nishant Yadav said the new circle rates had been uploaded on the portal.
“Registries will now be done on the basis of these rates. The rates in the agricultural, residential and commercial categories and those for HSVP plots and licenced colonies in the tehsils of Gurgaon, Sohna, Wazirabad, Badshapur, Manesar, Pataudi, Farukhnagar, Kadipur and Harsaru have been changed by 10 to 30%,” he further added.
Source : TOI