Floor rates going up

Get ready to shell out more stamp duty while buying real estate in the National Capital Region (NCR). The NCR board is likely to hike the minimum floor area rates (circle rates) for property transactions in and around the Capital by 20-30%. The new minimum rates are expected to make it easier for people to buy houses by entitling them to bigger home loans, besides generating more revenues for the government.
A circle rate is the floor price at which property transactions are registered, and quoting a lower price is not allowed. Therefore, higher circle rates mean more transparent transactions.
In addition, flats loan seekers would get bigger loans from banks as the property price reflected in the document would be higher, closer to the market value.
“The minimum floor area rates for property transactions were increased in different parts of the Capital last year. Still, there is scope for further revision to ensure optimum valuation of real estate. The circle rates in NCR are far below market rates.
Even after the proposed hike, rates would be far lower than market rates,” an NCR board official said. The board feels circle rates should be revised every year to reflect the actual value of land.
The urban development ministry has asked states to follow Delhi’s cue and hike circle rates for better stamp duty collection. In Delhi, circle rates vary from Rs 6,000 to Rs 43,060 per sq metre. Experts feel circle rates in states are much lower than market rates.

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