The Ghaziabad administration has proposed a nominal hike in circle rates of residential properties. The proposal is open to public objections until July 20, after which the revised rates will come into effect from August 1. Officials said that the proposed hike in 90% of the industrial and rural areas is negligible.
According to the proposal, the circle rate in the prime locality of Raj Nagar will be hiked from Rs 51,000 per sqm to Rs55,000 per sqm. A hike of Rs 500-Rs1,000 will be effected in Kavi Nagar, Gandhi Nagar, Vasundhara, Vaishali, Indirapuram, Nehru Nagar and other residential areas, depending on the location of the property.
“The highest increase in rates is proposed for Raj Nagar locality. Rest of the proposed hikes, in prime localities, are nominal. The public can now submit their objections to the office of additional district magistrate (finance), district magistrate, tehsil or sub-registrars by July 20,” Rajesh Sharma, assistant commissioner (Stamps), Ghaziabad, said.
“The hike is nominal considering the slump in real estate market,” he said.
Circle rate is the minimum value for which a property can be registered in the owner’s (new buyer) name. This can prove to be an extra burden on buyers if the actual value of a property is less than the circle rate. The buyers, then, have to pay more stamp duty and registration fee.
In contrast, the Uttarakhand government in January had reduced circle rates in various parts of Dehradun. In a few localities, the circle rates were almost halved.
The nearby NCR city of Gurgaon also reduced circle rates recently. Rates in prime areas — DLF Phase-I, Sushant Lok-I, DLF Phase-II, IV & V, Greenwood City, Nirvana-I, South City-I, DLF Phase-III, National Media Center — were reduced from Rs 66,000- Rs 77,000 per sqm to Rs 56,100-Rs 65,450. The rates in various Huda sectors, which earlier ranged from Rs 33,000-Rs 50,000 per sqm were brought down to Rs 28,050-Rs 42,500 per sqm.
Last year, in Ghaziabad, the rates were hiked by an average of 5% for residential plots while there was no hike in rates for properties in notified industrial and commercial areas. A proposal for a hike of 2%-10% was struck down after opposition from real estate developers.
On the revenue front, the department could amass only Rs 1,064 crore against the target of Rs 1,400.6 crore for the period of 2014-15. In 2015-16, the department generated revenue of nearly `970 crore, on account of stamp duties on property registration, against a target of Rs 1,540.7 crore. For the 2016-17 period, the stamps and registration department has received an increased target of Rs 1,617.70 crore. However, sale deeds in Ghaziabad declined from 76,904 in 2014-15 to 63,526 in 2015-16 due to the hike in circle rates.