New city circle rates may not burn a hole in pocket

There is good news for those planning to purchase properties in Gurgaon. The Haryana government is going to effect “routine” hike in annual property circle rates for 2012-13. The circle rates are expected to go up by 15%. Sanjeev K Ahuja reports.

There is good news for those planning to purchase properties in Gurgaon. The Haryana government is going to effect “routine” hike in annual property circle rates for 2012-13. The circle rates are expected to go up by 15%.

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Gurgaon deputy commissioner PC Meena said the revision of circle rates — also called collector rates — would soon be announced for the year 2012-13.

“However, the hike this time would hover around 10-20% with few exceptions. There has not been a major hike in the realty market in the last couple of months and the scene doesn’t look very encouraging for the coming months as well. So, we decided to revise the rates at normal percentage,” Meena explained.

Higher circle rates mean high cost of registration of properties as buyers need to spend more as stamp duty charges.

A hike to the tune of 20-33% was announced on March 31, 2010.

On September 30, 2010, another hike of over 100% was announced for 2010-11.

As against normal practice of revising circle rates once a year, the hike for the year 2010-11 was announced twice, a rare phenomenon.

The registration of properties is done on the basis of the annual circle rates announced for various localities by Haryana.

Rates differ from locality to locality.

However, following rumours that the circle rates are being revised at high percentage this year too, there was huge rush at the three property registration counters in Mini Secretariat on the last working day (March 30) of the financial year 2011-12.

There was a steep rise in circle rates to the tune of 150% between April 1, 2010 and April 1, 2011.