Circle rates to go up again, shell out more on property

After hiking the circle rates on property purchase by 100% and more last year, the Haryana government is all set to increase it again next month. HT reports.

After hiking the circle rates on property purchase by 100% and more last year, the Haryana government is all set to increase it again next month.

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Circle rate is the minimum rate of property fixed by the government. This is done to stop people for undervaluing their property and saving money on the registration fees.

Last year, the state government had not only increased circle rates twice, but had also increased it by 133% in areas like South City (Phase-1).

DLF City (Phase 4 and 5) saw an increase of 110%.

This had brought down the transaction of properties.

In the current financial year, circle rates were hiked by 15-20% in April last year. There was another hike in October.

The government announced different circle rates for localities on the basis of which buyers can register their properties.

Higher the circle rates, more is the property registration charges. Higher circle rates also involve higher amount of white money and this is why the property registration had taken a dip from a daily average of 150 to about 80-90 after the October hike, said a revenue department official.

According to the officials, new circle rate structure could involve newly carved out sector (58-115) in the Master Plan 2021, as the last revision did not have these localities.

The government could slap major hike for the colonies in Old Gurgaon as there too the property rates have risen significantly in the last one year.

It is also likely that the state government could slap a higher hike in circle rates for all colonies situated along the Gurgaon Expressway, Metro Track, Golf Course Road and MG Road.