New Delhi: Home prices in the city are set to zoom further as Delhi government on Wednesday hiked the circle rates—the minimum valuation at which properties have to be registered with the government—by upto 200% mainly to check black money component in property transactions.
The rates in category A colonies have been hiked by 200%, category B by 50% while in remaining colonies the rates will go up by 22%.
As per the rates approved by Delhi cabinet, Rs 6.45 lakh per square metre has been fixed as new circle rate for category A colonies like Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas. This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs 6.45 lakh per square metre.
The existing circle rate in category A colonies is Rs 2.15 lakh. The rates in category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been fixed at Rs 2,04,600 per square metre as against the current rate of Rs 1,36,400 per square metre.
The circle rates were last hiked in October last year by upto 250%.
Sheila Dikshit government hiked the rates as it felt the current circle rates were far lower than the actual market price of a property. “We have hiked the circle rates keeping in view the market rates of the properties. One of the main reasons for the hike is to curb the flow of black money in sale and purchase of properties,” she said.
Officials said increase in circle rates will definitely push up property prices in the city. Delhi revenue secretary Dharampal said the government decided to hike the circle rates to cut the black money component in property transactions.
He said government expects to generate an additional revenue of Rs 200 crore from hike in circle rates.