Home prices set to zoom as Delhi govt hikes circle rates

New Delhi: Home prices in the capital are set to go up further with Delhi government Monday hiking the circle rates -- the minimum valuation at which properties have to be registered -- by up to 20 percent with an aim to check black money component in sale and purchase transactions.

As per the decision approved by Lt Governor Najeeb Jung, the circle rate has been increased to Rs 7.74 lakh per square metre of land from Rs 6.45 lakh in category A residential 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 sq m.

The new rates will come into effect from Tuesday.

The land rates in Category B neighbourhood like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased to Rs 2,45,520 as against current rate of Rs 2,04,600 per sq m.

The circle rates in the city was last revised in November 2012. The rates were then hiked by a whopping 200 percent.

For C category colonies, the circle rate has been hiked to Rs 1,59,840 from current Rs 1,33,224 per square metre while in neighbourhood under Category D the new rates will be Rs 1,27,680 as against existing rate of Rs 1,06,384.

The rate for colonies under category E has been hiked from Rs 58,365 to Rs 70,080 per square metre while for F category colonies the rate will be Rs 56,640 as against current rate of Rs 47,140.

In respect of category G colonies, the new rate will be Rs 46,200 per square metre as against existing Rs 38,442 while for H category colonies it has been hiked to Rs 23,280 from Rs 19,361.

The circle rates were first introduced in Delhi in 2007, dividing the capital into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007.

source:http://zeenews.india.com/business/realestate/latest-news/home-prices-set-to-zoom-as-delhi-govt-hikes-circle-rates_108762.html