Curated By: Business Desk
Last Updated: August 28, 2023, 12:22 IST
Circle rate determines the property’s market value.
A circle rate is a minimum value, below which you cannot purchase or sell a real estate property.
The Delhi government plans to revise the circle rates of residential and commercial areas in the capital, according to reports. A senior revenue department official told The Times of India that the officials in the revenue department had previously made a plan. This plan proposed the creation of sub-categories into A and H categories of residential areas, with multiple slabs of circle rates. The official further said that the finance department had reworked this plan with certain objections and suggestions. He said, “Since there is a big gap in the existing circle rates and the market rate at which the sale and purchase of properties take place, we will propose a hike of up to 35 per cent. However based on the feedback received from the stakeholders, we will also consider downgrading or upgrading the categories of certain colonies based on their location, facilities, and existing market rates. “
A circle rate is a minimum value below which you cannot purchase or sell a real estate property, and this rate determines the property’s market value. According to the previous plan prepared by the officials of the revenue department, A category comprises areas, where people live in financially affluent conditions. The H category comprises the areas where the locals reside in economically weaker conditions. Areas like Golf Link, Vasant Vihar, and Jor Bagh are listed in the A category. B category comprises areas like Greater Kailash, Defence Colony, and Safdarjung. Tagore Garden and Subhash Nagar are enlisted in the C category. D category comprises areas like Rajouri Garden, Anand Vihar, and Daryaganj. Chandni Chowk, Jama Masjid, and Moti Nagar are in the E category. Anand Parbat, Daya Basti, and Daya Basti are in the F category. Ambedkarnagar and Dabri are listed in the G category, while Sultanpur Majra is in the H category.
The Delhi government had extended the 20 per cent rebate on circle rate for land and immovable property till June 30, 2022, to help Delhi’s Covid-hit real estate sector. The government took this decision on December 31, 2021. The rebate was discontinued from July 1, 2022, and that made the property transactions expensive.
