Circle rates for properties increased in Delhi

The Delhi government Monday massively hiked the circle rates, or land valuation rates, for properties in  a move that is expected to generate additional revenue before the Commonwealth Games.

The decision to increase the rates was taken at a cabinet meeting Monday.

The circle rates — minimum rate for valuation of land for residential use — for 2,480 colonies will vary from Rs.9,000 to Rs.125,000 per sq m.

Rates for posh colonies like Defence Colony, Friends Colony, Greater Kailash, Green Park, Nehru Place, Sunder Nagar, Vasant Kunj will be Rs.125,000 per sq m, while in the case of villages and certain other colonies it will be Rs.9,000 per sq m.

“The new circle rates for 2,480 localities will be publicised soon. The new rates will go a long way in ensuring property transactions at reasonable rates as far as genuine purchasers and sellers are concerned,” said Delhi Chief Minister Sheila Dikshit.

Diskhit said that based on the report submitted by the cabinet committee it has been decided to introduce circle rates based on localities/colonies instead of the existing basis of unit area method and associated categorisation of colonies from A to H Category.

Presently, the minimum rate for valuation of land for residential use is Rs.43,000 per sq metre for category A, while it is Rs.34,100 per sq m for category B. For Category C, it is Rs.27,300 per sq m; Category D - Rs.21,800 per sq m; Category E - Rs.18,400 per sq m; Category F - Rs.16,100 per sq m; Category G - Rs.13,700 per sq m and Category H - Rs.6,900 per sq m.

The move to hike circle rates for properties is expected to help the government earn additional revenue at a time when it is facing a financial crunch in the wake of large spending on improvement of infrastructure in the capital for the Commonwealth Games Oct 3-14.