Delhi government to hike circle rates by 30% in posh localities

07 Mar 2022 CW Team

The Delhi government has made a report that seeks to increase circle rates of landed properties in some posh localities of the city by 30% and slash it where the costs are high.

The report has been presented to the office of the revenue minister for his consideration. The new costs will come into effect after the approval of the Delhi government. The circle values of properties in Delhi fall in eight types of municipal areas – designated A up to H – depending on the growth of civic infrastructure and prevailing commercial value there.

The circle values or the official rates of land and immovable property were last updated in the city in 2014. The revision in circle rates may lead to a 30% increase in some chosen high end residential commercial areas of the city. It may additionally decrease in certain areas where the values are already very steep.

The update in the circle rates for most of Delhi will, yet, be nominal, he said. The revenue department had created four working groups in June 2021 for demonstrating circle rate revision in residential, commercial and industrial areas. The proposal sent to the minister has been made based on the suggestions of the working group.

The market values of properties in Delhi have gone up in the past few years although the circle rates remain the same since 2014, officials told the media. The Delhi government had decreased the circle rates by 20% for all types of properties in April 2021 to revive the real estate sector in the city. The relaxation was opened via notifications a few times and is valid till June 2022.

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