Up to 30% increase in circle rates likely
Planning to buy property? Get ready to shell out more. The district administration will hike circle rates by 10% to 30% in the first week of July.india Updated: Jun 28, 2011 01:46 IST
Planning to buy property? Get ready to shell out more. The district administration will hike circle rates by 10% to 30% in the first week of July. Circle rate is the minimum notified price below which no property can be sold. It ensures some parity between the "official" and "actual" price.
Circle rate determines stamp duty and registration fee. It helps curb use of black money transactions and ensures the government does not lose revenue due to undervaluation of properties. The revised circle rates may not have much impact on property prices but the cost of registration would definitely go up.
DIG (stamps) Vijay Deo Sharma said, "The district magistrate on Monday held a meeting with sub-registrars. There was a proposal to hike the circle rate. The last day for inviting public objections has expired. By June 30, all objections looked into. The new rates will come into effect from the first week of July."
The circle rate was necessitated after the Noida authority recently upped its land allotment rate. Circle rates are normally 20% to 30% more than the authority land rates. The district administration had a month ago constituted a committee to determine new rates in sectors of various land use - including residential, group housing, institutional, industrial and commercial.
"There have been more than 100 objections. The administration has held about a dozen meetings to thrash out the new rates," said a senior official. The new hike proposals are: residential, group housing and commercial (17%), institutional (20%) and industrial (32.5%).